Forget climbing the company ladder because younger employees are riding pogo sticks into retirement.
“No more ladders; “We only work for checks,” exclaims a lady in her late 20s. While many observers concentrate on the longer term of labor being reshaped by artificial intelligence and macroeconomic shifts, a brand new generation of employees is already rewriting the longer term of labor, careers and retirement.
Edward Jones, in collaboration with NEXT360 Partners and MarketCast, conducted a comprehensive mixed-methods study of the work, profession and retirement attitudes of younger people ages 18 to 34. Called GenNext, they’re the subsequent generation reshaping work, retirement planning, consumer behavior and more.
With nearly 76 million people, this cohort spans traditional generational differences between Generation Z and younger Millennials. “Our research, which combined extensive interviews and a national survey of two,003 18- to 34-year-old adults, provides a deeper understanding of GenNext, an age group defined by their shared experiences, not the 12 months they were born said Lena Haas, head of wealth management advisory and solutions at Edward Jones.
Study results suggest that GenNext is ushering in a paradigm shift in attitudes to work, profession progression and retirement. Unlike the infant boomers and generation
Today’s workplace and retirement planning is modeled on how the infant boomers and older generation ultimately consider loyalty and long-term commitment to a single employer would result in commensurate rewards in compensation, position, and ultimately security in retirement.
For GenNext, the concept of a linear profession progression is outdated and limiting. The loyalty of the employer is less vital; For lots of them, the concept of a profession ladder now not exists. Instead of continually climbing to the highest, they view a successful profession as a dynamic journey characterised by adaptability, exploration and frequent change. Edward Jones’ research shows that only about 1 in 10 GenNext members (13%) see a linear profession as linked to success and achievement. As one GenNexter noted, “You have to do a lot of things – multi-task – we have to work in a billion different areas.”
Why the change? Some older colleagues and employers could also be quick to portray GenNext’s attitude and behavior as an indication of a brief attention span, an absence of practical foresight, or inexperience with how the world works. Perhaps. However, it may very well be that their experiences have shaped their attitudes and current behavior.
A generation is less about age or stage; it’s about shared experiences. GenNext has experienced social and economic conditions which have influenced their view of labor and employers. Older members of GenNext, those of their early 30s, can have only been of their teens through the Great Recession, but they were affected by what their parents and friends’ parents experienced. GenNext saw fathers, moms, uncles and aunts who had worked for one employer for years downsized and their retirement security jeopardized because the economy struggled, upending not only financial problems but entire families.
Younger GenNexters, now of their 20s, entered maturity amid the Covid-19 pandemic. Everything that was once considered guaranteed became tenuous. From graduation traditions to non secular rituals, lives have been disrupted, placed on hold or moved online. The economic consequences of the pandemic have shown many who no institution or its employees are resistant to shocks. Shortly after the pandemic, AI and other technologies have captured the imagination and are not any longer science fiction, but are here today, posing a possible threat to countless professions – including those once considered secure.
Additionally, GenNext’s attitudes toward work-life balance and goal-oriented careers differ significantly from those of their parents and grandparents. They value flexibility, autonomy and meaningful work over traditional markers of success corresponding to title, position or salary. As a result, they’re more willing to take calculated risks and pursue non-traditional profession paths, be it job hopping, freelancing or entrepreneurship, or bypassing a profession path to learn latest skills. Paradoxically, lots of the same technologies that threaten traditional profession paths offer GenNext countless side hustles that mix to create a brand new profession path.
Will GenNext stay retired?
A Pogo Stick Career captures the dynamic and agile nature of GenNext’s attitudes and work behavior. However, the less predictable results of pogo stick riding also highlight the inherent challenges and uncertainties related to achieving financial security today and tomorrow in retirement. “They want flexibility in where and when they work and are open to non-traditional career paths,” Edward Jones’ Haas added. “Of course, this group will have different financial needs that impact how they save, spend and invest. It was important for us to understand their needs and see that they were open to advice if there were gaps.”
There could also be many gaps that GenNext must fill. The employer’s pension provision is a mainstay of retirement provision. Younger employees who select to maneuver regularly from one employer to a different may miss out on waiting periods for pensions or other advantages and miss out on vital opportunities to construct retirement wealth. Job or contract work will be lucrative now, but typically doesn’t allow participation in 401(k) or 403(b) retirement savings programs. Employers often offer their full-time employees access to discounted health, dental, and other insurance, and lots of proceed to supply access to those advantages even after retirement. While traditional employment doesn’t guarantee stability, for now it’s more stable than the mix of many side jobs, which regularly end in gaps in work and income and extra uncertainty in retirement planning.
Pogo stick careers will likely make it difficult to stay the landing in retirement. While linear, ladder-driven careers don’t guarantee financial security, multiple employers, side hustles and jobs require GenNext to place much more effort into planning, saving and searching for advice on how best to make sure a financially secure retirement. As one GenNexter in his 30s who took part within the study noted, “I am in control of my life and career, not some boss who doesn’t really know me; I just want to be sure that I will be okay in the future.”
