The 2024 All-India Aspiration Index report by Bank Bazaar reveals that while the aspiration to build health and entrepreneurship drives one generation, relationships and long-term security anchor the other. Read to know more.
The generational divide between Generation Z (Gen Z, those born between 1997-2012) and Millenials (1981-1996) shapes everything these groups aspire for in their lives, from career choices, and relationship goals to spending and financial habits. The 2024 All-India Aspiration Index report by Bank Bazaar reveals that while the aspiration to build health and entrepreneurship drives one generation, relationships and long-term security anchor the other.
The report, which surveyed 1,529 respondents aged between 22 to 45 years, reveals how these two generations differ in their priorities, and where their paths converge.
For Gen Z, health has become a cornerstone for their aspirations as they are highly aware of both mental and physical well-being. Over 57 per cent of respondents in this age group ranked mental health as their key goal, with physical fitness and nutrition also taking the top spot on their list of priorities. While mental well-being has taken center stage in the broader societal narrative today, it the report reflects that this generation places almost equal emphasis on physical health, making it a dual focus.
In contrast, millennials seem to have set their sights on building ‘relationships’. The report highlights that this age group, many of whom are already managing responsibilities like family care and professional growth, are highly focused on maintaining long-lasting friendships and building close-knit familial ties. The top aspiration for millennials includes living near immediate family and providing their children with quality education. Both of these priorities align with their focus on the present and existing roles.
Both these generation’s aspirations go beyond just personal well-being. Around 36 per cent Gen Z show a strong desire to become entrepreneurs. This business-building spirit drive is nearly uniform across genders, highlighting their focus on financial independence and liberty to pursue their passions.
Around 29 per cent of millennials share the same entrepreneurial aspiration but with slightly less focus. This could be due to their existing career paths or responsibilities that won’t allow them the leisure to pursue entrepreneurship without compromising on other goals such as relationships.
Homeownership seems to be a common dream for both groups, but the motivation and readiness to achieve the same differs. About 37 per cent of Gen Z see owning a house as a crucial life goal, whereas 41 per cent plan to purchase a house or vehicle within the next year. However, despite such ambitions, their readiness to achieve these goals lags behind, particularly for Gen Z women who reported a striking aspiration-readiness gap of 7 points when it comes to homeownership.
Some millennials already have a head start on property investment, therefore they show a relatively higher aspiration index in this area. However, the gap between their desire and readiness remains.
Retirement is another goal that finds a differing approach among both age groups, not in numbers but the intention. Where 37 per cent of Gen Z hopes to retire by the age of 50, only 23 per cent of millennials feel financially prepared for such an early retirement.
The report shows that millennials, particularly older ones are more realistic about the challenges of retirement planning and recognise the need for long-term financial stability. This group has their target set on savings and investing for their children’s education.
The report notes that financial realities are catching up with both groups but in different ways. Gen Z, for instance, shows a greater tilt toward early credit usage wherein one in four has loans or credit card bills to pay before even turning 22. Around 36 per cent of Gen Z and 46 per cent of millennials rely on education loans.
Given the heavy reliance on credit, 25 per cent of Gen Z finds it difficult to manage their debt. In comparison, about 17 per cent of millennials face similar issues.
The report throws light on the ways both generations navigated the post-pandemic economy. Where more millennials (38 per cent) than Gen Z (31 per cent) said that they have managed to keep their aspirations on track and some even accelerated them in the last year.
Gen Z says it faced more setbacks during the pandemic in terms of job loss (12 per cent compared to 8 per cent of millennials). It also reports a drop in savings (33 per cent in comparison to 36 per cent in millennials).
The difference between such adaptability and financial resilience among both groups is due to their respective life stages. While most millennials are pretty much settled into their careers and family roles, Gen Z is still navigating its professional journey. The former seems to be better equipped to deal with economic uncertainties, as the latter continues to be more susceptible to the shifts in the job market.