30% of Gen Z start investing in early adulthood – compared to 9% of Gen X and 6% of Baby Boomers, highlighting a sustained shift towards younger retail investors, according to a research by the World Economic Forum.

By the time they enter the workforce, 86% of Gen Z have learned about personal investing versus 47% of Boomers, underscoring a generational transformation in financial habits, WEF’s Global Retail Investor Outlook 2024 said.

Developed in partnership with Robinhood Markets and Boston Consulting Group, this latest global research also highlights emerging tech trends. Younger generations are also more open to tech and AI enabled financial advice, with 41% of Gen Z and Millennials reporting they would allow an AI assistant to manage their investments. Only 14% of Baby Boomers said the same.

“Younger generations and individuals in emerging markets are increasingly interested in investing to build wealth and enhance their financial stability,” said Natalya Guseva, Head of Financial Markets and Resilience at the World Economic Forum. “Given this sustained shift in investment demographics, it is critical for leaders to reassess the retail investing landscape and ensure individual investors are equipped with the right financial education and investing tools that support their financial goals.

The survey finds retail investors increasingly view cryptocurrency as more understandable and easier to understand than traditional investments like ETFs, mutual funds, bonds, and stocks. While 29% avoid stocks due to a lack of understanding, only 24% say the same about crypto. Among investors under 44 who hold cryptocurrencies, more than half allocated at least a third of their portfolio to it.

Financial priorities are shifting towards short-term needs. In 2024, 51% of investors prioritised emergency savings, up from 41% in 2022, while those focused on having enough to retire dropped from 48% to 42%.

For non-investors, the biggest barriers were lack of funds and fear of financial loss. More than half say they would have felt more confident investing if they had learned about it in primary school.

In addition to younger investors being more open to AI driven financial advice, the survey also finds that 48% of individuals from emerging markets across all ages would allow an AI assistant to manage their investments.

“Innovative financial advisory tools, such as AI-enabled products, could fill the gaps where traditional financial advisory may be too expensive or out of reach,” said Stephanie Guild, CFA, Senior Director, Investment Strategy, Robinhood. “Innovations that lower barriers to entry and enrich digital advice with intrinsic guidance, can help make financial advice more accessible, enabling more people to participate in the markets with greater confidence.”

“As new generations enter capital markets, evolving investor needs will require new financial products and platforms that expand past those traditionally tailored for institutional investors. Products that address key barriers including uncertainty, capital constraints, and market volatility can drive inclusion, confidence, and better outcomes for retail investors,” the research said.

Individual participation in capital markets has the potential to enable long-term financial well-being, added Dean Frankle, Managing Director and Partner, BCG, “Industry stakeholders must work together to equip retail investors with the best tools, education and access.”

Robinhood Markets Inc, BCG and the World Economic Forum surveyed over 13,000 respondents across the following countries: Australia, Brazil, China, France, Germany, India, Ireland, Japan, Singapore, South Africa, United Arab Emirates, United Kingdom, and the United States.

Gen X

Shift towards younger retail investors reshaping market trends: WEF

Managing Inter-Generational Workforce