Betterment's 2026 Retail Investor Survey Reveals a New Generation of Investors Is Blurring the Lines Between Information, Advice, and Entertainment

60% of Gen Z Investors Turn to Social Media for Financial News, Nearly Half Say AI Has Influenced a Financial Decision, and 52% Have Redirected Investing Funds to Sports Betting

NEW YORK, Aug. 12, 2026 /PRNewswire/ -- Betterment, a trusted wealth and savings platform, today released its 2026 Retail Investor Survey, the fourth annual look at how retail investors navigate financial decisions and what shapes their confidence. This year's findings show how quickly the financial-information landscape is changing for younger investors: social media has become Gen Z's most commonly cited source for financial news, nearly half say AI has influenced a financial decision, and more than half have redirected money intended for investing toward sports betting.

Betterment's 2026 Retail Investor Survey tracked 1,000 retail investors across four generations (Gen Z, Millennials, Gen X, and Baby Boomers) in April 2026, examining where investors turn for financial guidance, how those sources are shaping decision-making, and what supports long-term confidence.

Key findings from Betterment's 2026 Retail Investor Survey include:

• Social media's role keeps expanding, especially for Gen Z: Social media has become Gen Z's most commonly cited source for financial news, up from 45% in 2024 to 60% in 2026, and outpacing traditional news channels. That's nearly three times the rate of those who cite a financial advisor (21%).
• Trust in AI remains low, but for the minority who do trust it, AI is already shaping real decisions: Overall trust in AI for financial advice sits at just 31%, yet AI is already shaping real decisions for the investors who do trust it: 53% say it has influenced a financial decision they otherwise would not have made. Gen Z is driving much of that shift, with 48% saying AI has influenced a decision, and Gen Z investors are eight times more likely than Boomers to be comfortable using AI for long-term financial planning, 41% compared to 5%.
• For Gen Z, the line between investing and sports betting is blurring: 26% of Gen Z investors treat sports betting as a deliberate part of their long-term financial strategy, and 52% have redirected money originally intended for investing toward it in the past year. As legal gambling expands across the U.S., it is increasingly competing for dollars that might otherwise be building long-term wealth.
• Retirement confidence has fallen the most, but day-to-day financial outlook is up: Overall financial optimism has climbed to 55%, while retirement confidence stands at 44%. Gen X reports the lowest retirement confidence of any generation, at 31%, highlighting an opportunity to help investors build greater clarity around the next phase of their financial lives.

"When a prediction market or sportsbook starts to feel like a retirement strategy, we have a problem," said Sarah Levy, CEO of Betterment. "These products are designed to keep people seeking the next quick score, not to help them build toward the next decade. Younger investors deserve access to the tools and information that meet them where they are, but the industry also has a responsibility to be clear about the difference between participating in a trend and building lasting wealth."

Read or download the full report at betterment.com/retail-report.

Methodology
An online survey was conducted March 27 to April 3, 2026, with 1,000 U.S. retail investors evenly split across four generations (Gen Z, Millennials, Gen X, Baby Boomers). All respondents held at least one qualifying financial investment (401(k)-only holders were excluded). The panel was provided by Sago; respondents were recruited via email invitation and incentivized through the panel's established points program.

About Betterment
Betterment is a trusted wealth platform that provides modern, technology-driven solutions for investing, saving, and retirement. We empower customers to build wealth with confidence and ease via automated and self-directed investing, personalized financial advice, and high-yield cash management accounts. Betterment tailors its products and services to three distinct audiences, offering an award-winning web and mobile experience for retail investors, a 401(k) solution for small to mid-sized businesses through Betterment at Work, and an all-in-one custodial platform for independent RIAs through Betterment Advisor Solutions. Betterment helps more than 1 million customers manage over $70 billion in assets. Learn more at betterment.com.

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SOURCE Betterment