Betterment, which claims to be one of the largest independent digital financial advisors, released its Retail Investor Survey examining how investors are navigating a financial landscape “marked by inflation concerns, political uncertainty, and market volatility.”
Betterment’s Retail Investor Survey “surveyed 1,200 investors across four generations (Gen Z, Millennials, Gen X, and Baby Boomers) in April, revealing that despite broader economic uncertainty, investors are taking more control of their financial planning and are seeking financial guidance.”
Investors using investment apps and AI, who tend to “skew younger, are showing particular resilience, reporting superior portfolio performance and confidence in their retirement strategies.”
Key findings from Betterment’s 2025 Retail Investor Survey include:
- Market anxiety is real, but time horizon matters:While overall optimism has declined to 48% (from 60% last year) amid concerns about inflation (58%), political uncertainty (41%) and recession risks (41%), younger investors are proving more resilient.
- Gen Z (67%) and Millennials (53%) are significantly more confident than older generations, suggesting that having a longer time-horizon and more tools at their disposal provides a buffer against short-term market uncertainty.
The right tools make all the difference: Investors who “embrace digital investing platforms are seeing benefits beyond convenience – they’re 23 percentage points more confident in their retirement strategies and 20 percentage points more likely to report recent portfolio gains.”
Perhaps most importantly, they’re taking “a more active approach to tax-efficient investing (66% vs. 32% of non-users), suggesting that accessible technology is empowering.”
Technology and human expertise work best together: Rather than “replacing financial advisors, digital tools are complementing professional guidance.”
Investors using digital platforms are “nearly twice as likely to also work with a financial advisor (62% vs. 34% of non-users), indicating that investors today are seeking both the accessibility of technology and the personalized insight and assurance that human expertise can provide.”
Use – and distrust – of AI is on the rise as tools diversify: More than half (53%) of investors “use generative AI at least once a month for financial research.”
However trust in AI remains low, and “only 30% would rely on AI for financial advice, suggesting that while investors are more comfortable using Large Language Models, they are not ready to turn the keys over to them (yet).”
Use of social media as a financial news source “has continued to grow, with 36% of investors citing it as their top financial news source – up from 31% in 2024.”
Sarah Levy, CEO of Betterment said:
“It’s encouraging to see investors – particularly Gen Zers – thinking long-term about their finances while leveraging both technology and human expertise to make informed decisions. On our platform, Gen Z customers hold nearly twice the assets that millennials did at the same age, reflecting their improved access to financial education and tools that will set them up for long-term financial health.”
Methodology
An online survey was conducted with “a panel of potential respondents from April 2, 2025 to April 14, 2025.”
The survey was completed by 1,200 respondents, “evenly split between four generations (Gen Z, Millennials, Gen X, and Baby Boomers). All respondents held financial investments beyond solely a 401(k).”
The sample was provided by Sago, “a research panel company, and respondents were incentivized to participate via the panel’s established points program.”
