For BlackRock CEO Larry Fink, the biggest concern right now isn't inflation, but rather a lack of hope among young people. Millennials and Gen Z believe baby boomers are putting their financial well-being first, and Fink argues that they're right about retirement and Social Security.
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In his annual letter to BlackRock shareholders, Fink spoke about retirement expectations for each generation and the future of younger workers, Fortune reported. He cited a recent study by the University of Michigan that tracks national sentiment among 12th graders. According to the survey results, young Americans are 50% more likely to question whether their lives have a purpose. Four out of 10 people said, “It's difficult to have hope in the world.'' This is the worst since 1976, the Wall Street Journal noted.
“I've worked in the financial industry for nearly 50 years. I've seen a lot of numbers. But no data point bothers me more than this,” Fink wrote.
One of the biggest financial concerns for young workers today is the impending threat of retirement. Americans are living longer, but have difficulty maintaining Social Security and other retirement plans. As baby boomers continue to postpone retirement reform, younger Americans are losing hope and trust in older generations. According to Fortune magazine, young workers believe it is up to them to deal with the consequences.
Another concern is fear itself, especially a lack of confidence among young Americans to put money into the capital markets, Fink said. Fink believes investment confidence is a key factor in America's success and economic growth, Fortune reported.
In an interview with CNBC's Jim Cramer, Fink said investing is essential to helping people save money to live a rich life and quit working when they no longer want to.
Data from the New York Fed shows Gen Z and Millennials have increased their wealth by 80% over the past four years, thanks to the cost-of-living crisis and young people's economic outlook, Fortune added. However, it still falls far short of the boomer generation.
But there is still hope. Fink argued that the way to restore hope is for fellow baby boomers to invest in long-term goals, including retirement.
“I'm bullish on these young guys,” Fink told Kramer. “They are smarter than our contemporaries and have a more global understanding of the world.”
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This article originally appeared on GOBankingRates.com: Retirement and Social Security are Gen Z's two biggest financial concerns
