Gen Z’s Surprising Attitudes Toward Retirement

Gen Z, or those born in the late 1990s or later, have grown up in a world with the internet and have watched their parents navigate events such as the Great Recession and the rise of social media. Many Gen Zers are now in their mid-20s and are among the youngest in the workforce, with retirement still far off in the future. However, this doesn’t mean they aren’t planning for it. According to the Bureau of Labor Statistics, the average Gen Z worker earns around $39,000 annually, which is less than half of what millennials earn and 66% less than Gen X workers. Despite their lower earnings and limited time in the workforce, Gen Z workers have a savings rate of 14%, which is similar to other working generations. In fact, a study by BlackRock found that the average Gen Z worker has a retirement balance of $64,212, despite earning significantly less and having fewer years to save than millennials. To encourage Gen Z workers to continue saving for retirement, plan sponsors and advisors can provide educational resources, engage with them through visual and digital communication, align with their values, earn their trust, show respect, and help them cast a vision for their retirement. Tools such as personalized financial wellness programs can also be helpful in supporting Gen Z workers in their financial journey.