Gen Z leads in financial risk-taking compared to older generations

When it comes to taking financial risks, Gen Z leads the way, according to a recent study by Northwestern Mutual. The findings, part of the company’s 2026 Planning & Progress Study, reveal that nearly half of Gen Z and 40% of Millennials are willing to change jobs, switch careers, or start a business for a better shot at success or happiness. In contrast, only 19% of Boomers+ are willing to take such risks.

The generational divide in risk-taking is stark. Fifteen percent of Gen Z adults describe themselves as "first movers" in adopting new investment trends, compared to just 0.8% of Boomers+. This trend is reflected in their career choices as well. Forty-eight percent of Gen Z are willing to risk a job change or entrepreneurship for a better opportunity, while only 31% of Gen X and 19% of Boomers+ would do so.

John Roberts, Chief Field Officer at Northwestern Mutual, notes, "Younger adults are coming of age in an environment where change is constant and opportunities arise quickly. Their willingness to act can be a strength, especially when it is paired with research, discipline, and a financial plan. Risk taking should be intentional, not reactive, and it should fit within a broader strategy that balances growth with protection."

The study also highlights a significant shift in financial risk-taking among younger women. Over the past three years, 45% of Gen Z women and 42% of Millennial women say they have become more comfortable taking financial risks. This compares to 29% of Gen X women and 16% of Boomer+ women. The data suggest that age may be a more powerful dividing line than gender in understanding how Americans' appetite for financial risk is changing.

In contrast, the majority of Americans prefer reducing financial risks to preserve stability, even when it means accepting lower potential returns. Seventy-one percent of respondents say they would rather protect the safety and stability of their savings and investments. Only 29% prefer taking calculated risks for higher returns.

Roberts adds, "The next generation of women is challenging long-held assumptions about who takes financial risk. Risk gets a bad reputation, but avoiding it can be risky, too. The goal is to understand which risks are worth taking, how much exposure is appropriate, and what protections need to be in place."

While younger generations are more willing to take risks, the overall sentiment among Americans remains cautious. Over the past 12 months, 43% have become more risk-averse, while 31% have become more comfortable with risk. Another 26% say their financial risk tolerance has not changed.

Interestingly, younger generations, particularly Gen Z, are more likely to view uncertainty or the unknown with curiosity and excitement. Fifty-four percent of Americans associate uncertainty or the unknown with anxiety, while smaller shares cite curiosity (27%), fear (27%), frustration (25%), and excitement (18%).

John Roberts concludes, "Risk is not inherently good or bad. It is a tool. A comprehensive financial plan helps people decide when risk can advance a goal, when it needs to be moderated, and how insurance, investments, and other solutions can work together. That context is what turns risk-taking from a gamble into a calculated decision."

The 2026 Planning & Progress Study, conducted by The Harris Poll, surveyed 4,375 U.S. adults aged 18 and older. The survey was conducted online between January 5 and January 21, 2026, and data are weighted to reflect actual proportions in the population.