The ‘Soft-Saving’ Revolution: Gen Z’s Impact on Workplace Compensation

As Generation Z leans towards ‘soft saving’, employers recalibrate compensation structures to cater to immediate gratification over traditional retirement planning

In a notable departure from conventional financial wisdom, Generation Z is ushering in a new era of soft saving—a departure that is prompting a re-evaluation of workplace compensation structures. Born between the mid-1990s and early 2010s, Gen Z is challenging established norms related to financial planning. Soft saving, a contemporary approach, involves earmarking funds for immediate goals such as holidays, skill development, and technological advancements, steering clear of the rigid structures of traditional retirement planning.

This shift is evident in the 2023 YouGov India Millennial & Gen Z Survey, where 35 per cent of Indian Gen Z respondents prioritise saving for travel and experiences, followed by 27 per cent for education or skill development, and only 17 per cent for retirement.

Source: HR Katha

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