- On top of an inherited climate crisis, the young will have to suffer the economic consequences of a pandemic. For “Generation Z”, those born after 1997, this could mean higher rates of unemployment, lower earnings and higher taxes to pay off pandemic-era debts.
- Add to this unhappy list a less-noticed but no less serious problem: Generation Z’s dismal financial prospects. According to Credit Suisse’s latest global investment returns yearbook, Generation Z’s earnings from stocks and bonds will be significantly lower than those of previous generations.
- All of this adds up to annualised returns for Gen Z of a mere 2% on a 70:30 portfolio of stocks and bonds—not even a third of the historical return of the baby boomers (see chart).
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