What is Soft Saving?
As humans, we’re not great at delayed gratification. And that’s not changing anytime soon. Today’s younger adults, for example, would much rather spend their hard-earned money in the here and now than save every penny for the future.
The Great Softening
The “soft” in soft saving refers to Gen Z’s focus on low-stress lifestyles over the hard work and hustle culture that defined the workplace for past generations.
Instead of burning the midnight oil, most Gen Zers would rather have a higher quality of life than a bigger bank balance, including better work-life balance, freedom to pursue hobbies and take care of their mental health.
These shifting priorities are shown in savings accounts. The pandemic also had an effect on savings. After lockdowns and limitations throughout the height of Covid forced people to spend less and save more, Americans have been working away at their nest eggs. The savings rate fell to 3.9% in August of this year, notably lower than even before the pandemic, according to the Bureau of Economic Analysis.
Some two-thirds of Gen Zers aren’t sure they’ll ever have enough money to retire. That’s a pretty shocking number.
Maximizing your savings options through accounts like IRAs, can help you reach your goals.
Ready to invest for your retirement? It’s easy to get started when you open a traditional or Roth IRA with SoFi. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).
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