If you are a person who has a passion for work, then early retirement is not something you look forward to. Several generations do not appreciate early retirement. The growing desire among Gen Z in early retirement, however, is an exception to this circumstance.

The older generations, including the Baby Boomers and Gen X workers, have followed a different path when it comes to retirement. Many generations plan on retirement very far along in their careers or do not plan to stop working at all. So, the boom in early retirement plans by GenZ can be pretty concerning.

According to the U.S. Bureau of Labor Statistics data, it is seen that the quit levels have increased substantially since 2021, with millions of people leaving the workforce entirely. From the survey conducted by Goldman Sachs Asset Management, we can see that a whopping 25% of GenZ respondents plan on retiring before the age of 55.

Naturally, the question remains― why is GenZ so interested in early retirement? From the studies of CNBC, we can see why the mass exodus of GenZ from work life is booming so much.

Depending on the nature of the economy, job nature, culture, and workplace amenities these reasons vary largely. Yet, some of the most common reasons for GenZ to be interested in early retirement include:

• Job losses: One of the major reasons for GenZ to be interested in early retirement is the prospect of job loss. Especially after the Covid-19 global pandemic, studies show that GenZ workers were hit the hardest professionally. Their loss of jobs drives them to retire early.
• Difficulty finding job prospects: In today’s job market, GenZ faces the most difficulty finding job prospects. So, GenZ workers are motivated to retire early.
• Desire for better work control: The control over working hours, pay grade, location, accessibility, and other features of the job are very uncontrollable by GenZ workers. This creates a rise in interest for these people to retire early.
• Increase in entrepreneurial ventures: Arguably, one of the biggest reasons why GenZ workers plan on retiring early is due to the availability of entrepreneurial ventures. So, GenZ workers plan on retiring from the workforce early.

Early retirement can sound relaxing and even joyful to many people. If you are currently going through a rough patch in your professional field, the thought of early retirement may be satisfying to you. However, there are many downsides to early retirement that one must consider.

According to the analysis of the National Bureau of Economic Research, it is seen that there are many negative mental and physical health consequences associated with early retirement. It can cause severe mental health issues, leading to depression. Simultaneously, early retirement decreases mobility and causes poor health outcomes like cardiac disorders, strokes, etc.

Now, here’s what Gen Z can learn about creating an investment strategy from the Boomer generation. There are several techniques that GenZ has to learn from Boomers in order to prepare for early retirement. The following is a discussion of some of the most significant retirement investment strategies that Generation Z must learn from the boomers.

Having a different mindset: A different mindset can be of high value when it comes to determining your retirement investment strategies. One such example is the prospect of semi-retirement. In a survey conducted by Fortune, 79% of respondents agreed that they are likely to take a semi-retirement work schedule with limited hours.

The scopes of real estate: The act of investing in real estate can help GenZ remarkably to help them make the most of their retired lives. So, GenZ should start investing in real estate early with proper guidance and consultancy.

The uses of wealth tech: The rapid growth of wealth tech and platforms has created a hyper-personal approach to financial literacy. It has made investing easier while teaching the general public about many dimensions related to investment. So, GenZ needs to follow the Boomer guide and make full use of the wealth technologies.

The rise of the early retirement interests of GenZ is alarming. It can cause several mental and physical well-being issues for them in the long run. To discuss this more, join our forum. Join the movement with us by registering now.