The youngest Gen Zs are still in their early teens and Generation Alpha is mostly still in grade school, but 2025 adds a new generation into the mix.
Generation Beta – or “Beta Babies” – are those born since the start of the year, but while new parents will be mostly focused on diapers and sleep-disturbed nights for some time, the financial future of these new Americans should be considered sooner rather than later.
That’s according to a new report from Prudential Financial – which recently announced a new CEO in a leadership shakeup - which looks at how the newest addition to the population will see a different future to their parents and guardians.
Eighty percent of respondents to the firm’s survey agreed that, ideally, retirement planning would start from birth, with most saying not saving enough for their own retirement is their number one regret.
The research also reveals expectations for how different Generation Beta’s lives will be; 86% believe that the jobs they will do have not been invented yet and 68% think their children will have more pets than offspring.
These factors will impact the finances of Beta Babies, but so will a predicted increase in life expectancy with half of respondents saying this new generation will cure cancer.
However, while retirement may be a key focus of the report, 58% of parents and prospective parents do not think Generation Beta will ever retire.
“As a first-time parent, I understand how daunting financial planning can be for a family,” said Brandon Goldstein, ChFC, financial planner with Prudential Financial. “While you can’t predict the future, you can plan for it from day one. My son’s future starts with me and how we plan for it as a family. Most new parents think about updating their healthcare plans or insurance policies, but that’s only the beginning. Reassessing your budget to ensure you’re accounting for long-term savings goals and factoring in expected rising costs for the entire family is a critical step.”
In launching its Beta Baby Bonus to celebrate its 150th anniversary this year, with those caring for those born on New Year's Day 2025 able to apply for $150, the firm says that if this amount was invested toward retirement savings it could be worth $100K by the time the newborn reaches 70.
Plus, a $400 million Commonwealth team departs to launch an independent family-run RIA in the East Bay area.
The collaboration will focus initially on strategies within collective investment trusts in DC plans, with plans to expand to other retirement-focused private investment solutions.
“I respectfully request that all recruiters for other BDs discontinue their efforts to contact me," writes Thomas Bartholomew.
Wealth tech veteran Aaron Klein speaks out against the "misery" of client meetings, why advisors' communication skills don't always help, and AI's potential to make bad meetings "100 times better."
The proposed $120 million settlement would close the book on a legal challenge alleging the Wall Street banks failed to disclose crucial conflicts of interest to investors.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
