Young people from generation Z worry more about their retirement

Young people are more concerned about their retirement, despite the fact that centennials or generation Z (those born between 1997 and 2012) are one of the segments of the population that save the least, experts point out that they are more concerned about generating savings for the future , despite the fact that this population has fewer years of having entered the labor field.

Of the workers who belong to generation Z, those who make voluntary savings for their retirement amount to 62.08%, a size that is close to 62.25% of the workers who are part of the millennial generation and save, according to information presented in the Well-being study. financial 2023

Christian Hauswaldt, director of Invested, commented that, unlike other generations, centennials, who are not older than 26, identify the importance of saving for old age and make voluntary contributions from the beginning of their working careers.

“Today young people observe that in their environment there are people who retire in conditions that they see as favorable or not, because of this they begin to identify the contrasts in the aging process of those who saved and those who did not. Today in Mexico, these types of problems are going to be observed more frequently and they may be signs that will help the younger generations to be more aware of the importance of managing their resources,” Hauswaldt commented.

In addition, Moisés Pérez Peñaloza, leader of AON’s Retirement and Financial Well-being, explained that situations such as the pandemic, the current economic crisis, and the changes made to the pension system in France, in addition to observing the situation of those who today face retirement , encourages centennials to observe greater uncertainty and recognize the importance of saving for old age.

“Today we all have uncertainty, for example we observe the case of France that changed its retirement age (from 62 to 64 years). Imagine that years before your retirement age changes, these are factors that do not depend on you, but that through a retirement scheme will allow you to take action, I believe that today we are beginning to see self-convincing that retirement is a personal responsibility , something that did not happen with other generations”, commented the AON director.

Benefits of saving for retirement

Currently, there are several financial products that can help you not only create formal savings for retirement, but also obtain tax benefits from it. Data from the Financial Well-being study reveal that only 22.17% of those who save for retirement take advantage of the tax benefits that are found in Mexico, such as the tax deduction of Income Tax.

“It is important that more people realize that in addition to saving they can have a refund through tax incentives. Today, those who take advantage of this option are realizing that they can save and have good long-term results, but also that by doing so through instruments that offer fiscal stimuli they obtain additional money, and that the end result is better,” Hauswaldt commented.

Some products that can help you by obtaining a tax benefit are voluntary contributions. There are different types of voluntary savings through retirement fund administrators (Afores), however the main contributions that can allow you to enjoy tax deduction are voluntary contributions with a long-term investment perspective, and withdrawal supplements; These contributions can be made from community stores, applications, by payroll discounts or by direct debit.

There are also some instruments within the financial market known as the Personal Retirement Plan, in which each financial institution indicates how much is the amount that you must save; There are also options in which you can save from 200 or 500 pesos per month, through these the financial institution indicates to the user what is the amount that could be reached for his retirement, in addition to the fact that, like voluntary savings, it offers tax benefits .

joselyn.ugarte@eleconomista.mx