Many Gen Z workers, those born between 1997 and 2012, often are more willing than older workers to forgo a pay increase in favor of nonmonetary benefits and flexible work arrangements, according to Charles Schwab’s annual survey of 401(k) plan participants.
Eighty-six percent of Gen Z respondents said they would forgo a pay raise in favor of better benefits, and 76% said they would do so in exchange for a more flexible work arrangement. Millennials, born between 1981 and 1994, are little less likely to to give up a pay raise, with 74% saying they’d sacrifice money for benefits and 67% vying for flexibility, such as a hybrid arrangement, remote work or more flexible hours.
The numbers dropped for members of Gen X, those born between 1965 and 1980. Sixty percent of this age group said benefits outweigh pay, and less than half (49%) said they are willing to forgo a pay raise in favor of a flexible work schedule.
The baby boomers, born between 1946 and 1964, want their money in one form or another, with equal portions (50% each) preferring benefits and cash. A meager 29% of baby boomer respondents said they would prefer a flexible work arrangement over a pay raise.
Many Gen Z respondents said they hope to retire by age 61, yet 99% of them said they are facing obstacles to saving for a comfortable retirement. That’s a 9% increase over last year.
“Younger workers are still finding their financial footing in an economic environment that is challenging for everyone. They are just starting out, so it’s no surprise that they may feel greater financial pressure, especially with such an ambitious timeline to retirement,” Schwab Workplace Financial Services Head Brian Bender said in a press release.
Across the board, workers said they are experiencing financial stress, but more than half of them said that their employers did something in the past year that helped them manage their financial stress.
“Gen Z (71%) is the most likely to say that their employer took steps to help in the form of increased pay (31%), increased 401(k) match (25%), increased current employee benefits (23%), additional bonus (19%), decreased hours for better work-life balance (17%) and new employee benefits (15%),” according to the report.
