Khaberni - A recent survey by investment firm "Charles Schwab" reveals a clear gap in wealth expectations between generations, with more than half of millennials believing they are on the right track to becoming wealthy, compared to only 16% of Generation Z.
According to a study that involved 1,000 people around saving and investment habits, the results showed that about 54% of millennials are confident about achieving wealth, while pessimism dominated the Silent Generation (6%), the Baby Boomers (11%), and Generation X (15%).
The study confirmed that investors are 3 to 4 times more optimistic than regular savers, with 57% of investors believing they are on the right track to building wealth, compared to only 13% of those who stick to holding cash. Additionally, 70% of investors felt financially comfortable compared to 29% of savers.
Despite the long-term benefits of investing, the United Kingdom remains a country inclined towards cash saving, where currently only one in three people direct their money towards investments.
The study explained that fear of losses, high living costs, and the need for emergency money are the main reasons that prevent savers from directing their money into the stock market.
The study also pointed out that investing, even in small amounts, can significantly multiply gains over time.
Despite the relative optimism among millennials, inflation and rising living costs have forced more than half of British households to reduce the amounts allocated for saving or investing, or to stop saving altogether.
In a comment on the results, Richard Flynn, the managing director of the firm, said: "Even investing small amounts can be a powerful tool for building long-term financial security, but the cost of living crisis makes it difficult for many to achieve this, and many fear they will not be able to build wealth and financial comfort."
