Inflation concerns, political uncertainty, and ongoing market volatility are challenging, but retail investor, especially younger one, are leaning into financial planning with renewed confidence, a new report shows.
Betterment’s 2025 Retail Investor Survey polled 1,200 investors across four generations and found that while overall optimism has dipped, digital-savvy investors, particularly Gen Zs and Millennials, are increasingly taking control of their financial futures and leveraging both technology and professional advice to navigate uncertainty.
Across the board, investor optimism has cooled, dropping to 48% from 60% last year with inflation remaining the top concern (58%), followed by political instability and recession risks (both at 41%).
However, Gen Z (67%) and Millennials (53%) remain far more confident than Gen X and Baby Boomers thanks to the advantage of a longer run to retirement and their native skills with digital tools.
The report reveals that investors using digital platforms are 20 percentage points more likely to report recent portfolio gains and are 23 points more confident in their retirement strategies. They’re also more active in tax-efficient investing, with 66% optimizing for tax impact compared to just 32% of non-users.
But the use of these tools has not removed the need for human financial advisors. In fact, digital platform users are nearly twice as likely to also work with a financial advisor (62% vs. 34%), indicating a growing preference for hybrid advice models that combine tech accessibility with human insight.
More than half (53%) of investors now use generative AI at least monthly for financial research, yet only 30% are willing to rely on it for actual advice. While tools powered by large language models are increasingly part of the financial toolkit, trust in AI remains a work in progress.
Meanwhile, social media’s role as a financial information source continues to rise, now leading for 36% of respondents—up from 31% last year.
“It’s encouraging to see Gen Z leaning into long-term planning and making use of both technology and expert guidance,” said Sarah Levy, CEO of Betterment. “This generation is on track to build more wealth earlier, aided by better access to financial education and tools.”
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