While economic uncertainty has shaken investor optimism across generations, Gen Z is emerging as a surprisingly confident force in the retirement savings game.

According to Betterment’s 2025 Retail Investor Survey of 1,200 investors spanning all major age groups, just 48% of respondents expressed optimism about the current market—down from 60% the year before. Inflation and political uncertainty continue to dominate concerns, with 58% worried about rising costs and 41% anxious about instability in Washington.

But younger investors are bucking the trend.

With decades until retirement and a digital-first mindset, Gen Z is leveraging technology—like investing apps and AI-powered tools—to take control of their financial futures. The survey revealed that 67% of Gen Zers and 53% of Millennials feel “significantly more” confident than older generations when it comes to their retirement outlook. Among users of digital investment platforms, 68% said they were open to taking on more risk, a figure that rose to 71% among those using AI for investing decisions.

“It’s encouraging to see younger investors think long-term while combining technology with professional guidance,” said Betterment CEO Sarah Levy. “On our platform, Gen Z customers are holding nearly twice the assets that Millennials did at the same age, showing just how much more equipped they are thanks to improved access to financial education and tools.”

That confidence is also translating into more engagement with financial advisors. Among investors with a positive outlook, more than half (54%) said they work with a financial advisor, and many reported better financial plans, progress on long-term savings goals, and reduced financial stress.

Alternative Investments Gain Ground

Alongside growing digital adoption, Gen Z is also showing strong interest in diversifying their portfolios beyond traditional stocks and bonds. While 34% of all respondents said they currently invest in alternative assets, a staggering 81% of Gen Zers expressed interest in expanding into this space.

Cryptocurrency topped the list of alternatives at 58%, followed by real estate (49%), commodities such as gold and energy (39%), and collectibles like art and wine (26%). Private equity and venture capital also made the list, cited by 23% and 17% of investors, respectively.

Still, some hesitancy remains. More than half of investors surveyed said they’re reluctant to add alternatives to their portfolios, citing security concerns (42%) and volatility (38%) as the biggest barriers.

Dan Egan, Betterment’s VP of Behavioral Finance and Investing, noted that turbulent markets often trigger renewed interest in less traditional assets. “Periods of volatility make investors—especially more seasoned ones—look for new ways to diversify. That’s exactly what we’re seeing now.”

With Gen Z’s growing appetite for digital tools, financial guidance, and alternative assets, the next generation of investors may not only be better informed—but also better prepared—for the road to retirement.

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