Recent research highlights a trend of young adults frequently changing careers, differing from their parents’ generation.
- Those aged 18-34 anticipate holding three distinct careers in contrast to older generations.
- A significant factor influencing this trend is the emergence of new job types driven by technological advancements.
- Younger workers show an increased tendency to change jobs for better work-life balance compared to older individuals.
- Financial considerations, such as pension holidays, are seen differently by younger generations.
A new study reveals that younger adults between 18 and 34 years old expect to transition through an average of three different careers over their lifetimes, a notable increase compared to older generations. This expectation is largely driven by the availability of novel job opportunities precipitated by rapid technological change.
The research, commissioned by Handelsbanken Wealth & Asset Management, brings attention to the shifting dynamics in work and pension expectations between age groups. Specifically, individuals aged 55 and above have historically had two careers, taking brief breaks in pension contributions that last approximately two years.
Moreover, the younger demographic is notably more inclined to shift careers in pursuit of an improved work-life balance. According to the data, about 26% of young adults would consider changing their job type to enhance their quality of life, compared to just 14% of those nearing retirement.
These generational preferences also extend to financial planning. Younger individuals expect to take longer breaks from pension contributions—averaging five years—than those over 55, who typically pause contributions for two years. The rationale for these pension holidays varies, with reasons including travel, health concerns, wealth accumulation, and affordability.
Christine Ross, Client Director at Handelsbanken Wealth & Asset Management, comments on the findings: “It’s no surprise that younger people expect to experience more career changes over their lifetimes than the generations before them. They are more likely to be working for longer and will face more workplace changes driven by rapid tech advancements.” She further warns that while exciting career changes can be enticing, financial planning should remain an essential consideration. “Amid the excitement of changing careers, the importance of sound financial planning needs to remain in focus,” Ross advises.
The findings underscore the importance of adapting financial strategies to accommodate evolving career paths among younger generations.
