Gen Z is Redefining Financial Planning—The Industry Needs to Catch Up

Gen Z is proving to be far more financially astute than the traditional financial industry gives them credit for. While institutions persist with outdated, financial-capital-only strategies, this generation is approaching financial planning with a broader, more intelligent perspective—one that considers human capital, longevity, and a radically changed economic landscape.

With many expected to live beyond 90, Gen Z isn’t just planning for a distant retirement—they are rethinking financial well-being over a lifetime. They understand that their careers, earning potential, and personal development are just as critical as savings and investments. The industry, meanwhile, remains fixated on the past, scratching its head at why young people aren’t engaging with pensions in the way previous generations did.

A New Reality: Financial Planning for a 100-Year Life

The financial landscape has shifted dramatically. Gen Z faces challenges that previous generations either didn’t experience or encountered much later in life:

• Student debt is at an all-time high, making early saving difficult.
• Housing affordability is a growing crisis, delaying homeownership and wealth accumulation.
• Job security is fragile, with a rise in gig work and self-employment.
• Retirement age is increasing, with many expecting to work well into their 70s.

Faced with these realities, Gen Z is prioritising financial flexibility, career resilience, and lifelong income strategies over traditional retirement savings. They see wealth not just as a figure on a balance sheet, but as an evolving mix of skills, networks, and opportunities. This isn’t financial neglect—it’s financial intelligence.

The Pension Industry’s Blind Spot

A recent Pensions Policy Institute report highlights that Gen Z is delaying pension contributions due to more pressing financial priorities. Yet, instead of recognising the need for a new approach, the financial industry clings to outdated models, bemoaning a “problem” that is actually an opportunity for innovation.

Rather than demanding Gen Z engage with systems designed for a different era, the industry must adapt. This generation needs:

Holistic financial planning—aligning human capital, career growth, and financial security over a lifetime. Flexible, accessible pensions—suited to self-employed, gig workers, and multi-career professionals. Education that empowers—not fear-based messaging, but real-world strategies for wealth creation.

The Future of Financial Planning Is Holistic

Gen Z is already taking control. They are building diverse income streams, investing in skills, and leveraging financial tools on their own terms. The financial industry must evolve beyond its rigid, one-size-fits-all approach or risk irrelevance.

The future belongs to those who embrace financial planning as more than just saving for retirement—it’s about thriving across a lifetime. Gen Z understands this. The real question is: will the industry catch up?