Understanding generational trends and preferences is more crucial than ever, especially for the financial services industry. From Baby Boomers to Gen Z, each generation brings a unique set of preferences, values, and challenges. Financial institutions must navigate a complex web of technological advancements, demographic shifts and changing trends to match consumers of different generations with tailored solutions. Exploring the world of generational dynamics within the financial sector reveals how different age groups interact with financial products and services, and what this means for the future of the industry.
The next five years are crucial for key financial milestones: the largest Gen Z cohorts will turn 18 and acquire credit, millennials will reach the average first-time homebuying age of 38, and Baby Boomers and older Gen X cohorts will reach the average retirement age of 63.
Amid these demographic shifts, Gen X stands out with the highest expenditures among all generations, while millennials are growing their assets through homebuying and investments. Credit cards are increasingly the first acquired credit product, reflecting a trend towards early financial independence. Additionally, the preference for digital financial services and banking interactions decreases with age, highlighting the generational divide in embracing technology. Explore these generational trends, preferences and insights below and with even more depth in our Generation Next Chartbook.
Gen Z
The entire Gen Z generation will be old enough to independently acquire credit by 2031, with the largest cohorts reaching the age of credit-eligibility over the next 1-2 years. However, as the effects of declining birth rates come into effect, the subsequent cohorts will be smaller in size.
Millennials
Millennials are the largest generation, and over the next five years, the largest cohorts of millennials will reach the average first-time homebuying age of 38.
Gen X and Baby Boomers
The largest cohorts of the Baby Boomer population and the oldest Gen X cohorts are at or near average retirement age, and with Baby Boomers leaving the labor force and retiring earlierthan prior to the pandemic, we are in the midst of an immense retirement wave.
Download our generational trends report to uncover more trends shaping the financial preferences of today’s generations.
