Gen Z Shifts Investment Money to Sports Betting, Raising Retirement Concerns

According to a Betterment Retail Investor Survey conducted in late March and early April 2026, 52% of Gen Z participants redirected investment dollars to sports betting at least once over the past year, and 14% did so several times each month. The same poll recorded lower participation among millennials (31%), Gen X (10%) and baby boomers (4%). Finance specialists note that while gambling winnings must be reported to the IRS, they are not considered covered wages by the Social Security Administration, so they do not enhance a worker's benefit formula.

Michael Ryan cautioned that money diverted from retirement accounts such as Roth IRAs or 401(k)s forfeits decades of compound growth. Alex Beene highlighted the broader risk of reduced private savings and greater reliance on Social Security, which already faces funding challenges. A limited exception exists for professional gamblers who can report earnings as self-employment income, potentially earning Social Security credits.