Generation Z is the youngest adult generation in the U.S. today, giving Gen Zers (ages 18-28) ample time to get financially prepared for retirement. But for many, it doesn’t appear to be a priority, at least not yet.
Fewer than 1 in 5 Gen Zers (18%) say they’ve contributed to a retirement account in 2025, according to BW’s
Financial Goals Midyear Check-In Report
. This could be attributed to several factors — like a lack of urgency, know-how or extra funds to get started.
But another BW survey on retirement, conducted online by The Harris Poll, suggests that many Gen Zers may not think they’ll even need retirement savings, and some have trepidation about the U.S. stock market. If this is you, here are a few things to know and tips to get started saving so you can eventually stop working, even if it seems too far away to worry about.
Many Gen Zers plan to work indefinitely
The retirement survey finds that three-quarters of Gen Zers (75%) plan to stay in the workforce for as long as they physically can. Maybe they’ll still feel the same three or four decades from now. But maybe not. Things change, and no matter your age, it’s smart to prepare for an eventuality where you’ll want to (or have to) retire.
What Gen Zers can do: Allow yourself to change your mind and set a goal
One of the best things money can buy is opportunity. In this case, the opportunity to change your mind later.
Whether or not you currently plan on retiring some day, set a goal number. It doesn’t have to be perfect and it will probably change over time, but start somewhere. Use a
retirement calculator
to estimate how much you might need in your golden years.
It can be hard to imagine your future self without just picturing an older-looking version of current you. But over the decades, it’s almost a certainty that your life will change. You could experience disability or need to take on caregiving responsibilities for a loved one. Or, you might find you just don’t want to continue working after thirty or forty years. If you don’t save for the future, you’re limiting your ability to retire without financial hardship.
More than 2 in 5 Gen Zers think Social Security will be enough
With a retirement goal amount in mind, you might be curious how much of that will be covered by your
Social Security benefits
. Likely some, but not all of it. According to the retirement survey, 43% of Gen Zers think Social Security alone will provide enough income for them to live comfortably during retirement. But Social Security is meant to cover just a fraction of your income — about 40%, though this can vary — when you stop working, not replace it.
In June 2025, the average monthly Social Security benefit for a retired worker was $2,005. By the time Gen Zers are ready to leave work, this could be even lower (adjusted for inflation): The
2025 Social Security Trustees Report
estimates that the combined Social Security Old-Age and Survivors Insurance and Disability Insurance Trust Funds will be depleted in 2034, at which time Social Security benefits would be reduced to 81%.
This means Gen Zers likely won’t have the same benefits their predecessors had, and even if they did, Social Security wouldn’t be sufficient for most to live on. Instead, it’s a good idea to save as if this benefit will be reduced in the future.
What Gen Zers can do: Start saving now
Retirement may not seem like a pressing concern in your twenties, but it’s smart to start early. Ideally, Social Security income will be there to supplement your savings when you’re ready to retire. But in any case your age puts you in a great position to prepare.
Let’s say you’re 25 years old and have a retirement savings goal of $1.5 million by age 65. That may sound like an impossible sum, but most of the total will come from returns earned by investing your retirement savings in the stock market. Based on past market performance, we can assume an average annual return of 7%, after accounting for inflation.
If you postpone saving until you’re 35, you’d need to invest $1,280 a month for 30 years. But if you start investing today, you’d have to save less than half that per month — just $604 — for 40 years.
Note that by starting now, you’d have to save around $170,000 less than if you waited to start until age 35. That’s because your returns have more time to compound.
Saving several hundred dollars a month may be a tall order, but don’t let that stop you from saving anything at all. Forty years is a long time, and it’s likely your financial situation will change over the course of your working life, hopefully for the better. Start by saving
something
for the future — whether that’s just hitting an employer match on a
401(k)
, putting a small percentage of take-home pay in a
Roth IRA
and/or committing to increasing contributions when you get a pay bump.
Investing consistently over the years can lead to significant growth in your retirement savings. While market fluctuations may cause uncertainty, historical trends show that the stock market has always bounced back from downturns. It’s important to diversify your portfolio to mitigate risks and increase your chances of long-term financial success. By investing in low-cost index funds and staying committed to your financial goals, you can build a secure future for yourself. Remember, starting early and investing consistently can make a world of difference in achieving your financial objectives. The weather has been stormy all day.