Is Gen Z really saving more for retirement than baby boomers?

Yes, a recent study suggests nearly half of Gen Z workers are projected to maintain their current lifestyle in retirement, slightly ahead of baby boomers.

What is helping Gen Z achieve retirement readiness?

Employer-sponsored Defined Contribution plans with features like auto-enrollment and target-date funds are significantly aiding younger generations' savings efforts.

Are baby boomers prepared for retirement?

While some wealthy baby boomers are on track, many face retirement shortfalls and may need to consider options like reducing spending or working longer.

Home / Business and Economy / Gen Z Outpaces Boomers in Retirement Readiness

Gen Z Outpaces Boomers in Retirement Readiness

29 Nov

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Summary

Nearly half of Gen Z workers are projected to maintain their lifestyle in retirement.
Employer-sponsored retirement plans significantly aid younger generations' savings.
Many baby boomers face retirement shortfalls despite holding substantial wealth.

Gen Z Outpaces Boomers in Retirement Readiness

Younger generations, particularly Gen Z, are showing a surprising level of preparedness for retirement, potentially surpassing older cohorts. Projections indicate that nearly half of Gen Z workers may maintain their current living standards in retirement, a figure higher than for baby boomers, millennials, and Gen X. This financial foresight is attributed, in part, to the prevalence and features of employer-offered Defined Contribution plans.

These plans, such as 401(k)s and 403(b)s, are at all-time high participation and eligibility rates. Features like auto-enrollment and target-date funds make saving more accessible and effective for younger workers. While access to these plans is not universal, especially for lower-wage and part-time employees, their widespread availability is a significant factor in building long-term financial security.