Gen Z with phone
Gen Zers are saving early and aim to retire early. Pixabay

The entire baby boomer generation has reached retirement age. Every generation that follows has its own view of retirement and planning for the later years. Gen Z is the most bullish on retirement, believing they'll retire early and be wealthier than Generation X and millennials.

Retirement Crisis

If there's a least-prepared generation, Gen X is it, according to a 2024 US retirement survey conducted by British asset management firm Schroders. The current age of this group in 2025 is between 45 and 60. Only 14% of respondents feel they have saved enough money for retirement.

About 54% of Gen Xers worry about outliving their assets in retirement, compared with 40% of the older baby boomers and 50% of younger millennials. Nearly half of poll respondents, or 48%, admit they do not engage in retirement planning.

Most of them see themselves as independent and self-reliant. However, over half, or 53%, fear returning to work to cover expenses. Many Gen Xers earn more than baby boomers, yet future financial security has never been a priority. This MTV generation is known for having the highest average student loan balances, credit card debt, and monthly mortgage payments among age groups.

Core Workforce

Millennials (29-44 years old) are the core workforce today, and are practically everywhere. For Americans in this generation, home ownership is the measure of success. Others specifically say they can't retire or buy a house without an inheritance.

According to data from the National Association of Realtors (NAR), the median age of first-time homebuyers in the US is now 40. Affordability is their primary issue. Jessica Lautz, NAR deputy chief economist and vice president of research, said, 'Today's first-time buyers are building less housing wealth and will likely have fewer moves over a lifetime as a result.'

Millennials are consumed by choosing between retirement and homeownership. Those without access to wealth through housing turn to contribution plans early in their retirement journey. The 401(k) is their preferred retirement vehicle. More importantly, millennials have more retirement savings plan options than the baby boomers, including those of their parents.

The prominent financial challenges for millennials are home costs, child care costs, and medical debt. Their ideal retirement age is 64.

Fastest Start on Saving

Millennials are about 16 years older than Gen Z on average. You might think saving for retirement would be farthest from Gen Z's minds. The truth is, they are well-positioned to better prepare for retirement because time is on their side. Also, they have the burning desire to retire sooner rather than later, at 50, not 60.

The 2025 Northwestern Mutual Planning & Progress Study showed that Gen Z started saving at age 24 compared to 29, 33, and 37 for millennials, GenX, and boomers, respectively. The age they plan to retire, with a seven-figure nest egg, is 61 at the latest.

Robinhood co-founder and CEO Vladimir Tenev is a millennial. However, he notes that young savers are watching and learning. Gen Zers are already socking away cash for their eventual retirement. Micro-retirement is also reshaping this generation.

Fill the Income Gap

Pension plans and other lifetime benefits after the working years are partial replacements for the average pre-retirement income. Prospective retirees must fill the income gap to avoid financial dislocation. It also ensures you won't come out of retirement due to urgent financial need.

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