Millennials, loosely defined as those born in the 1980s to mid-1990, make up about a quarter of the world’s population. Nearly nine in every 10 millennials live in emerging economies. South Africa has more than 14 million millennials, or 27 percent of its population.
Attitudes towards money and investing differ greatly from previous generations. Millennials are sceptical of the financial institutions and strategies that their parents used. They’re a product of the uneasy economic conditions they’ve lived through, and are the first generation of true digital natives.
1. Their financial goals are different. According to the 2019 Deloitte Global Millennial Survey, those who started working after the 2008 global economic crisis have endured long periods of slow economic growth. They have lower real incomes and fewer assets than previous generations, as well as higher levels of debt. Of the 16000 survey respondents, 31percent do not have full-time employment.
Millennials often live with their parents, and delay renting or buying their first property. Many prefer to spend their money on experiences and travel. As many are unemployed or participate in the gig economy, they may struggle to plan for their financial future. The World Economic Forum predicts that by 2050, when millennials in the world’s eighth largest pension markets start to retire, the retirement savings gap will be $427 trillion (R6350 trillion).