Despite drops in overall economic optimism, younger investors are proving to be more resilient in the current market, the latest research from Betterment shows.

The firm’s 2025 Retail Investor Survey found that of 1,200 investors across Gen Z, Millennial, Gen X, and Baby Boomer generations, 48% reported feeling optimistic in the current market environment, down from 60% last year. Over half (58%) of investors continue to report concerns over inflation, while 41% are anxious over political uncertainty.

Younger investors tended to feel more confident in the market compared to older generations, given the longer time horizon until retirement and greater availability of retirement products, including digital solutions. These investors were likelier than seasoned professionals to use digital investing platforms and artificial intelligence (AI) technology for financial purposes.  

As a result, Betterment’s research finds that 67% of Gen Zers and 53% of Millennials were “significantly more” confident than older generations, with 68% of digital investing app users and 71% of AI users were open to taking on more risk in their portfolios.

“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,” said Sarah Levy, CEO of Betterment. “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.”

Those who have a brighter outlook of their retirement are more inclined to work with a financial advisor, Betterment’s report adds. More than half (54%) of investors with a positive attitude on their investments sought out financial guidance and reported having “improved financial plans, advancement of long-term savings goals, and reduced financial stress.”

Others are considering incorporating alternative investments, like cryptocurrency, private equity, commodities, and real estate, into their portfolios. Thirty-four percent of respondents are currently invested in alternatives, while 81% of Gen Zers say they’re interested in adding the asset class. Across all respondents, 66% say they became somewhat or much more interested in alternatives over the past six months.

Of those who invest in the asset classes, 58% listed cryptocurrency as their top alternative investment, while 49% chose real estate, 39% said commodities like gold, silver, energy, etc., and 26% picked collectibles like wine, art, cars, etc. Other top alternative assets included private equity (23%) and venture capital (17%).

Over half of investors were still hesitant to include the investment in their portfolio, with 42% of investors citing security risks and 38% naming volatility for their reluctancy.

Dan Egan, vice president of Behavioral Finance and Investing at Betterment, noted that investors are likelier to look into new forms of investments during periods of market volatility—thus explaining the recent uptake in attention.

“After several years of declining interest, there may be a couple of reasons we’re seeing new enthusiasm for alternative assets. Chief among them is that when market uncertainty is on the rise, investors [particularly those with more experience] are likely to seek new ways to diversify their portfolios,” Egan added in the report.

Additional information from Betterment’s 2025 Retail Investor Survey can be found here.

SEE ALSO:

Betterment Buys Ellevest’s Robo-Advice Side

Betterment Buys Direct Indexing Platform Rowboat Advisors

Betterment Unveils Podcast Highlighting Advisor Experiences

Amanda Umpierrez

Managing Editor at 401(k) Specialist | Web |  + postsBio ⮌

Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.