It’s no secret that millennials and Gen Z — the 141 million Americans born between 1981 and 2012 — view retirement differently than their peers from previous generations. A 2023 study found that Gen Z shun saving for retirement in favor of “soft saving,” or putting aside small amounts of money while prioritizing personal growth and mental well-being. The study also found that three in four Gen Zers express that the economic climate makes them hesitant to set up long-term goals, and two in three believe they’ll never have enough money to retire. An uncertain future means their preference is to invest in the now.
Millennials share a similar story: Their retirement readiness lags far behind Gen X and Baby Boomers. A 2022 study found that almost four in 10 millennials born in the 1980s will have inadequate retirement income, with people of color, unmarried people and those with lower levels of education in an “especially precarious” position.
