Crypto investments trump pension savings for a third of Gen Z, with a quarter turning to social media for financial advice
- 34% of 18-24-year-olds would rather invest in crypto than a pension
- Almost half of young men prefer investing in digital currencies over retirement
- A quarter of Gen Z are using social media for financial advice
- Only 9% are worried about making poor investment decisions
LONDON – 1 February 2022 – More than a third (34%) of Gen Z would rather invest in cryptocurrencies than a pension, and almost a fifth (18%) want their bank to provide support and advice on investing in digital currencies, according to new research out today.
The appetite to invest in crypto is higher among young men too, with almost half (46%) admitting to preferring crypto to retirement savings, compared with a quarter (27%) of young women.
Overall, a further 30% of 18-24-year-olds aren’t sure if they would rather invest in cryptocurrency than a pension, suggesting a concerning knowledge gap around personal finance and investments among the generation.
The findings come from smart finance app W1TTY1, which surveyed 2,000 18-24-year-olds in the UK on their financial habits and attitudes towards savings and investments.
Social media often the go-to place for financial advice
The research also revealed that social media has become the go-to destination for almost a quarter (24%) of Gen Z seeking financial advice, as Instagram and TikTok’s ‘finfluencers’, who provide advice on saving and making money, continue to take the platform by storm. In 2021 alone, there were 4.4bn views of on TikTok with the hashtag #personalfinance.
A third (33%) of young people are also using Google to access financial advice, while one in 10 (10%) don’t seek any financial support whatsoever.
Despite the lack of professional financial advice young people are receiving on their investments, Gen Z are feeling bullish about their crypto assets, with only 9% of respondents worried about making poor investment decisions.
In fact, the biggest financial concerns for 18-24-year-olds in 2022 are:
- Not meeting their savings target (18%)
- Not being able to pay their bills (16%)
- Maintaining a stable income (16%)
- Not being able to fund their hobbies (12%)
Ammar Kutait, CEO and founder of UK-based fintech W1TTY, said: “Retirement probably feels like lightyears away for 18-24-year-olds, but you’re never too young to plan for your future.
“While crypto may seem like an attractive asset class, it’s also an incredibly volatile one, so anyone choosing to invest in it should understand the risks involved. As we saw last year, impressive gains can be met with sudden, sharp declines.
“Overall, it’s important for young people to diversify their portfolios. Spreading their finances across traditional investment vehicles and alternative assets is just one strategy they should be considering as they lay down the foundations for their financial future.”
W1TTY secured its EMI license from the FCA last year and will be launching in the UK in the coming months. The London-based (or UK-based) fintech aims to fill a gap in the finance market by providing young people with specific services for their financial needs, including an educational platform, 24/7 customer service support and industry-leading rewards programs. The app is already operational in Portugal, Spain, Poland and Lithuania.