How Gen Z is redefining financial independence

For Gen Z, the traditional arc of “graduate, work hard, retire at 65” feels outdated – maybe even restrictive. We want lives with built-in ‘micro-retirements’, flexibility, and emotional safety nets; the freedom to travel, reset, or explore new directions without putting our long-term goals at risk.

We’re not necessarily chasing retirement, we’re chasing autonomy. That shift changes how we define financial success, how we design our investments, and how we make decisions every day.

From retirement dreams to real-time living

A March 2025 Intuit survey found 64% of Gen Z prioritise peace of mind over wealth, and 62% choose personal balance over a higher income. Gen Z isn’t disengaged from our finances, we’re actively shaping them, using intentional strategies and tech-enabled tools to build confidence through lived experience.

We’re designing plans that allow us to enjoy our money along the way. The rise of micro-retirements – planned, self-funded breaks to rest, travel, or pursue personal goals, shows we want periods of rest and reinvention throughout life, not just at the end. But if we’re going to live like this, we need the right financial structures to make it sustainable.

Structuring money for freedom and security

Autonomy doesn’t happen by accident – it’s built through intentional portfolio design. A single “all-purpose” investment account can’t give you both liquidity and growth, so the smarter approach is to divide your money according to purpose and time frame:

• Long-term growth portfolio: Retirement savings left untouched to compound.
• Flexible medium-term portfolio: For goals in the next 5-10 years, with low-penalty access.
• High-growth allocation: Investments that maximise returns while you can tolerate volatility.

This setup gives you clarity on which funds you can access for experiences and which are ring-fenced for future security, reducing the temptation to dip into long-term savings for short-term wants.

Keeping liquidity without losing momentum

Micro-retirements and “soft saving”, setting aside funds for meaningful experiences, are increasingly popular among younger workers. Both trends reflect a shift from deferring life until retirement to building in moments of rest and reinvention along the way.

The challenge is making these choices without derailing long-term goals. The solution is clear: set defined liquidity targets and protect them as fiercely as your retirement savings. Maintain enough in accessible, low-volatility investments to cover a year’s living expenses or fund a planned break, so you’re never forced to cash out long-term assets at the wrong time.

Review allocations annually to ensure your short- and medium-term funds remain healthy while your growth portfolio continues compounding. This disciplined approach lets you say yes to opportunities now while preserving the financial foundation for your future self.

The role of continuous education

Designing these portfolios is only the start. To manage them well, you need to keep learning, not sporadically, but as a lifelong habit. Autonomy comes with responsibility, and making confident financial decisions means understanding the trade-offs of every choice.

That means going beyond quick TikTok tips. Follow credible professionals, attend webinars, read market updates, and test strategies with small amounts before scaling. The better informed you are, the more control you have over your liquidity and growth.

Managing the emotional side of money

Even with the right portfolios and education, autonomy can slip away if emotions dictate your decisions. Financial insecurity is a major stressor for our generation. A 2023 EY study shows that just 31% feel secure, with nearly half experiencing ongoing anxiety.

Separating how you feel from what you do financially is critical. Treat your plan like a long-term project, not something to be overhauled every time the market dips or your newsfeed gets noisy.

Aligning money with values

Finally, autonomy is about more than personal freedom, it’s about aligning money with the life you want to lead. Many of us want investments that not only deliver returns but also have a positive social footprint, from job creation to environmental impact. Choosing fund managers that share your values makes your portfolio something you’re proud to hold, which strengthens your commitment to the plan.

With the right structure, discipline, and values, Gen Z can live on our own terms, enjoying the freedom of now without sacrificing the security of tomorrow. We’re choosing our own paths, and our portfolios should be equally unique.

 * This article does not constitute financial advice. Please consult an authorised financial adviser before making investment decisions.

** Pitso is the junior manager, research analyst at Sanlam Investments Multi-Manager.

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