8 out of 10 MZ Generation Office Workers Are Investing... "Real Estate" Is the Top Investment Purpose

Investment amount is less than 20% of monthly income
The top investment goal is purchasing real estate, followed by saving seed money as second

[Asia Economy Reporter Ki Ha-young] Eight out of ten MZ generation (Millennials + Generation Z) office workers are investing beyond savings and deposits, and it was found that they achieved a return of over 10% this year.

On the 21st, Rich & Co, a corporate insurance agency, commissioned mobile research firm Open Survey to conduct a financial technology-related survey targeting 1,000 office workers in their 20s and 30s living in the metropolitan area. As a result, 83% of respondents answered that they are 'currently investing' in stocks, real estate, funds, cryptocurrencies, etc.

More than half of the investors in their 20s and 30s invested at a level not exceeding about 20% of their total income. When asked about the proportion of investment relative to monthly income, 28.5% of respondents answered 'less than 10%', the highest proportion, followed by 'less than 20%' (27.0%) and 'less than 30%' (17.9%). The proportion of aggressive investors who said they invest more than 50% of their total income was also significant at 11.6%.

When asked about mid- to short-term (1?5 years) investment purposes, 'preparing real estate such as independence or home purchase' ranked first (42.2%). Notably, 20-somethings (44.6%) had a higher proportion than 30-somethings (39.9%) who cited 'real estate preparation' as their investment purpose. The second most common investment purpose was 'preparing seed money for larger investments' (40.4%). Other purposes included 'for new experiences and ownership such as travel and luxury purchases' (8.8%) and 'repayment of existing loans such as student loans and overdrafts' (5.7%).

The main investment method preferred was 'direct stock investment.' In a question asking 'in which fields and by what methods do you invest' (multiple responses allowed), 'direct stock investment' accounted for 88.2%, ranking first. The second was cryptocurrency (34.8%), third was 'indirect stock investment' through various fund products (28.0%), and fourth was 'insurance investment' such as savings insurance and dollar insurance (22.9%). This shows that the 20s and 30s generation utilizes a variety of methods across all investment areas.

The 20s and 30s generation set reasonable target returns, and more than half of the investors achieved stable profits. When asked about the target return rate for this year's investments, 'in the 10% range' was the most common at 39.4%, and 25.2% answered 'in the 20% range.' A total of 65.0% of respondents (sum of first and second place) expected a reasonable investment return of about 10?20%.

The actual investment results were also good. 52.0% of respondents said they 'recorded profits' through this year's investments, meaning more than half of MZ generation investors made gains. Additionally, 25.0% said they 'maintained the principal,' and 23.0% reported 'recording losses.' Regarding investment returns, 38.6% answered they recorded '10?24%', the highest proportion, followed by 13.6% for '25?49%' and 8.7% for '50% or more.'

The 20s and 30s generation also showed high interest in savings-type insurance that prepares for risk situations and guarantees a safe future. According to this survey, 77.5% of MZ generation office workers answered that their 'interest in insurance has increased,' while 22.5% said their interest was 'similar to before or has not increased.' Among those who said their interest in insurance increased, about 34.8% reported increased interest in protection-type insurance, whereas more than 42.7% showed increased interest in savings-type insurance, reflecting the heightened interest of the MZ generation in insurance.

When asked why their interest in savings-type insurance increased, 38.9% answered 'to use it as a form of personal pension.' Following that, reasons included 'because the interest rate is higher than deposits and savings' (34.2%) and 'because it is considered a suitable investment destination' (15.2%).

Gong Tae-sik, CEO of Rich & Co, said, "We are not only focused on attracting MZ generation customers but also highly interested in securing future growth engines through recruiting MZ generation talents." He added, "The rational tendencies of the 20s and 30s generation, who are simultaneously preparing for the future and seeking investment effects through insurance, are expected to have a positive impact on the future insurance industry within the next 10 years."

This content was produced with the assistance of AI translation services.