WEF Reveals Gen Z Investment Trends: Faster and More Risk-Taking

Gen Z is demonstrating a distinct approach to investment compared to previous generations. This change is not only influenced by technological advancements and broader access to information but is also closely tied to levels of trust in financial institutions and the economic system at large. According to the World Economic Forum’s (WEF) Global Retail Investor Outlook 2024 report, Gen Z tends to start investing earlier in life and shows greater interest in complex investment products, including cryptocurrencies and other alternative asset classes. WEF notes that approximately 30% of Gen Z begin investing while still in higher education or in early adulthood. This figure is significantly higher than previous generations, such as Gen X at 9% and baby boomers at 6%. Furthermore, this generation’s investment literacy is relatively higher at a young age. Around 86% of Gen Z have studied personal investing before entering the workforce, compared to just 47% of baby boomers. The availability of digital platforms, lower transaction costs, and ease of access to information are factors driving earlier participation in capital markets. WEF also highlights that around 45% of Gen Z and millennials start investing in early adulthood, compared to just 15% from older generations. In addition to starting investments earlier, Gen Z is considered more open to investment instruments with higher complexity. The WEF report states that younger investors are more likely to invest in complex products than previous generations. This openness to technology is also reflected in the growing interest in AI-based services in the financial sector. Approximately 41% of young and millennial investors state they are willing to allow AI assistants to manage their investments. The adoption of such technology is part of a broader change in financial behaviour, where digitalisation affects how younger generations access, understand, and evaluate investment opportunities.