A new study reveals younger generations foresee more career changes than their predecessors.
- Individuals aged 18-34 expect to have up to three distinct careers over their lifespan.
- Technological advancements are a key factor driving career shifts in younger populations.
- Significant differences in work-life balance priorities emerge between age groups.
- Younger generations plan longer pension holidays, reflecting unique financial priorities.
A recent study commissioned by Handelsbanken Wealth & Asset Management highlights a stark contrast in career expectations between younger adults and their parents. Young adults aged 18-34 foresee having an average of three different careers over their lifetime. In contrast, those aged 55 and older have experienced, on average, only two careers. This generational shift is largely driven by brand-new job types that have emerged due to disruptive technologies, a factor cited by over one-quarter of the survey respondents.
The research demonstrates that younger people are more inclined to seek career changes for improved work-life balance. Younger adults are twice as likely as their older counterparts to switch jobs in pursuit of better quality of life. Specifically, 26% of individuals aged 18-34 would opt for a career change to enhance their work-life equilibrium, compared to just 14% of those aged 55 and above. This highlights a growing prioritization of flexibility and personal fulfillment among the younger workforce.
In terms of financial planning, the study uncovered a trend towards longer pension breaks among younger workers. Those aged 18-34 anticipate taking a five-year hiatus from pension contributions over their careers, which is over double the pension holiday duration of their older colleagues, who report an average of two years. The main motivations for these breaks include travel, health issues, and the financial leeway to cease working temporarily.
Christine Ross, Client Director at Handelsbanken Wealth & Asset Management, notes the importance of sound financial planning amidst these shifting career patterns. She emphasizes the need to consider the impact of pension breaks on long-term savings, especially for those transitioning to self-employment or roles with varying salary scales and pension offerings. While the excitement of changing careers is evident, maintaining a focus on financial sustainability remains crucial.
The study reveals distinct differences in career and financial expectations between generations, emphasizing the need for strategic planning amidst evolving work landscapes.
