Gen Z and milestone planning
Sandwiched between Millennials and Generation Alpha, Generation Z (Gen Z or ‘Zoomers’) are the first demographic cohort to have come of age with technology at their fingertips from an early age.
These ‘Digital Natives’, born between 1997 and 2012, are expected to make up 30% of the global workforce by 2030, according to the World Economic Forum – so it’s vital that, as advisers, we understand the legal and cultural factors informing their decision making so we can support them in the years to come.
To help us do this, we partnered with Opinium to commission an independent survey of 2,000 Gen Z adults (aged 18-27 years) and 2,000 of the (non-Gen Z) general population to unpack their generational perspectives on wealth management and life’s major milestones including marriage/civil partnership, having children, home ownership and travel.
This article is the second article in the series, which forms part of a longer report on wealth management and life planning for Gen Z. As Gen Z navigates a world with greater access to technology and social media, their outlook on and attitudes to milestone events in their lives such as marriage/civil partnership, having children, and home ownership is changing.
Gen Z and life-defining events
Marriage is increasingly viewed as a capstone of life, a step taken once individuals are settled and have clarity in their relationship and financial situation, rather than as a foundational starting point. According to our research, having children or starting a family tops the list as one of the most significant life events for Gen Z adults (40%), followed by getting married (19%) and buying a home (14%). Interestingly, more Gen Z women consider starting a family to be a life-defining event than Gen Z men (43% vs. 36%), yet the opposite is true for getting married (21% for Gen Z men vs. 16% of Gen Z women). Other events such as starting a dream job, graduating from university, starting a business, and moving abroad are less frequently viewed as life-defining, with percentages ranging from 4% to 10%.
A modern view on marriage/civil partnership and having children
Three quarters of Gen Z adults want to get married (75%) while seven in 10 (69%) want to have children, according to our research. This is markedly higher than the Millennial cohort, with just 43% and 39% saying the same. The findings come as the latest government statistics show that marriage rates have returned to pre-pandemic levels.
This appears to play out in the interest in cohabitation agreements among this cohort, with nearly half of Gen Z adults (47%), saying that they would be open to signing a cohabitation agreement before moving in with a partner or buying a property together – more than twice the average across older generations (23%).
It also reflects a rise in this sort of family living arrangement more broadly, with the Office of National Statistics reporting that cohabitants accounted for almost one fifth of couples living together in the UK (18%).
Gen Z: Romance vs. reality
Alongside finding love and getting married, Gen Z hasn’t lost sight of the importance of protecting their wealth and assets.
Among those that want to get married, nearly half (48%) would be likely to agree to sign a prenuptial agreement, according to our research, enabling them to set out what they would wish to happen, should their marriage break down.
As a firm, we are seeing a rise in interest in pre-nups from increasingly younger people, which can partly be explained by the fact that they are more likely to enter marriage with the expectation that their roles will be equal, so are more comfortable with separating their finances. There are also wider socioeconomic factors at play. This is a generation that has grown up partly in a recession and is now faced with unaffordable housing and an increasing cost of living crisis, so protecting their own wealth has become a financial imperative.
Indeed, for the Gen Z adults that do not want to get married, more than a fifth (22%) cite the expense of weddings as a factor. This isn’t unfounded: the average cost of a UK wedding rose to £20,700 in 2023, according to research by UK wedding planning brand Hitched.
Cohabitation agreements: What you need to know
A cohabitation agreement is a binding contract that sets out what would happen in the event of a separation, in circumstances where the law that would otherwise apply may be limited. It can set out arrangements for property ownership, financial provision and support for children (if applicable) both during the cohabitation and upon separation or death.
Couples can make an agreement at any time, but it is typically agreed and executed before they move in together or upon a milestone event, such as buying a property or having a child.
Cohabitation agreements are distinct from pre- or post-nuptial agreements (for couples who are due to marry or who are already married) but the rationale for them is similar: to provide as much certainty and clarity as possible.
To be binding, the agreement must be entered into freely and voluntarily; in the form of a deed; validly signed by both parties; and kept up to date in the event of changes, such as buying a property and having children.
Nuptial agreements are also on the rise, particularly among younger generations. To date, the uptake of cohabitation agreements has not been as high as nuptial agreements, but our survey findings suggest an increasing number of cohabiting couples are likely to enter into such arrangements in the future.
The government has confirmed that it will publish a consultation on the rights of cohabiting couples in 2025 “to build public consensus on what cohabitation reform should look like.” The current state of the law is inadequate, and many family lawyers have been calling out for change.
As Generation Z continues to redefine traditional milestones, their approach to life planning reflects a blend of modern values and practical considerations. With a strong emphasis on securing their financial future and navigating relationships with clarity, Gen Z is reshaping the landscape of marriage, cohabitation, and family planning. As advisers, understanding these evolving priorities is crucial to effectively supporting this dynamic cohort. The insights from our research underscore the importance of adapting wealth management strategies to meet the unique needs and aspirations of Gen Z, ensuring they are equipped to thrive in a rapidly changing world.
Read the report in its entirety.
