They're set to earn less than previous generations on stocks and bonds, according to Credit Suisse's global investment returns yearbook. In fact,

Gen Z is going to have a hard time getting rich

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2021-05-24 19:00:06

They're set to earn less than previous generations on stocks and bonds, according to Credit Suisse's global investment returns yearbook.

In fact, the generation can expect average annual real returns of just 2% on their investment portfolios — a third less than the 5%-plus real returns that millennials, Gen X, and baby boomers have seen. Credit Suisse's analysis took in average investment returns since 1900 and forecasted them going forward for Gen Z.

The yearbook acknowledges that marked deflation could increase bond returns, The Economist reported, but it said inflation is more of a concern. What the report calls a "low-return world" is yet another another financial obstacle for the generation, who may be on track to repeat millennials' money problems.

A December Bank of America Research report called "OK Zoomer" found that the pandemic will impact Gen Z's financial and professional future in the same way that the Great Recession did for millennials.