THE BIG THINK
INVESTING
ACROSS GENERATIONS
By Fran Troskie, Research Analyst at PPS Investments
In a rapidly changing world, various generations of investors are navigating how best to save, invest and preserve wealth. Each cohort, from Baby Boomers to Generation X and Millennials to Generation Z, approaches investing through the lens of its own experiences. It is these perspectives that shape attitudes towards risk, technology, sustainability and long-term financial planning.
Understanding generational differences is essential. Investment strategies are shaped by economic cycles, technology and social priorities; recognising these forces helps build portfolios that stay relevant, resilient and aligned with investor expectations.
Different starting points, different prioritiess
For Baby Boomers, born between 1946 and 1964, retirement is either imminent or already underway. While this life stage is often associated with financial security, many Boomers began investing relatively late in life. As a result, capital preservation has traditionally been the dominant priority. Fixed interest instruments and dividend-paying equities have long underpinned retirement portfolios.
Rising life expectancy is challenging these conventions. Longer retirements increase the risk that traditional income-generating strategies may fall short. In response, some investors are cautiously expanding their opportunity set. Selective exposure to alternative assets, including infrastructure, can provide more stable income streams while supporting long-term return objectives.
Generation X, born between 1965 and 1980, occupies a more complex position. Often described as the“ sandwich generation”, many are balancing the financial demands of supporting both ageing parents and dependent children. Their investment behaviour has also been shaped by repeated market disruptions, from the dot-com bubble to the Global Financial Crisis to the Tech Tsunami.
These experiences have created a degree of caution, sometimes bordering on risk aversion. Yet Generation X retains a critical advantage: time. With retirement still some years away, there is scope to pursue assets that offer improved risk-adjusted returns. Carefully selected private market investments, including hybrid structures and mezzanine debt, can help balance growth with diversification in a way that traditional portfolios may not fully achieve.
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