8
How Gen Z is Preparing (or Not) For Retirement
You’re our first priority.
Every time.
NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. They are not intended to provide investment advice. NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Our estimates are based on past market performance, and past performance is not a guarantee of future performance.
We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.
So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners.
How Gen Z is Preparing (or Not) For Retirement
Some Gen Zers don’t think they need to save for retirement, according to a new NerdWallet survey.
Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.
Published · 6 min readHow is this page expert verified?
NerdWallet's content is fact-checked for accuracy, timeliness and relevance. It undergoes a thorough review process involving writers and editors to ensure the information is as clear and complete as possible.
More on our editorial rigor
Senior Writer & Content Strategist
11 years of experience Expertise Data analysis personal financeErin El Issa writes data-driven studies across personal finance topics. She loves numbers and aims to demystify data sets to help consumers improve their financial lives. Before becoming a Nerd in 2014, she worked as a tax accountant and freelance personal finance writer. Erin's work has been cited by The New York Times, CNBC, The Guardian, the "Today" show, Forbes and elsewhere. In her spare time, Erin reads and crochets voraciously and tries in vain to keep up with her two kids. She is based in Ann Arbor, Michigan.
Erin El Issa writes data-driven studies across personal finance topics. She loves numbers and aims to demystify data sets to help consumers improve their financial lives. Before becoming a Nerd in 2014, she worked as a tax accountant and freelance personal finance writer. Erin's work has been cited by The New York Times, CNBC, The Guardian, the "Today" show, Forbes and elsewhere. In her spare time, Erin reads and crochets voraciously and tries in vain to keep up with her two kids. She is based in Ann Arbor, Michigan. Published in Senior Writer & Content Strategist + more + more
Economist & Spokesperson
19 years of experience Expertise Economics Data analysis Personal financeAs NerdWallet’s Senior Economist, Elizabeth Renter spends her time analyzing economic trends and data to help people make more informed decisions about their personal finances. Her work has been cited by The New York Times, The Washington Post, the "Today" show, CNBC and elsewhere. Prior to joining NerdWallet in 2014, she was a freelance journalist. She received a Masters of Science in Finance and Economics from West Texas A&M University, and focused her elective coursework on macroeconomics and analytics. When she’s not at work, Elizabeth enjoys college football, old houses, traveling to old cities and powerlifting. She is based in Durham, North Carolina.
As NerdWallet’s Senior Economist, Elizabeth Renter spends her time analyzing economic trends and data to help people make more informed decisions about their personal finances. Her work has been cited by The New York Times, The Washington Post, the "Today" show, CNBC and elsewhere. Prior to joining NerdWallet in 2014, she was a freelance journalist. She received a Masters of Science in Finance and Economics from West Texas A&M University, and focused her elective coursework on macroeconomics and analytics. When she’s not at work, Elizabeth enjoys college football, old houses, traveling to old cities and powerlifting. She is based in Durham, North Carolina. Published in Economist & Spokesperson + more + moreGeneration 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.
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 NerdWallet’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.
Fewer than 1 in 5 Gen Zers (18%) say they’ve contributed to a retirement account in 2025, according to NerdWallet’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 NerdWallet 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.
But another NerdWallet 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
Many Gen Zers plan to work indefinitelyThe 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.
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
What Gen Zers can do: Allow yourself to change your mind and set a goalOne of the best things money can buy is opportunity. In this case, the opportunity to change your mind later.
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.
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.
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
More than 2 in 5 Gen Zers think Social Security will be enoughWith 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.
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%.
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.
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
What Gen Zers can do: Start saving nowRetirement 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.
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.
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.
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.
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. It all adds up over the decades.
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 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. It all adds up over the decades.Some Gen Zers have trust issues with the stock market
Some Gen Zers have trust issues with the stock marketThree in 10 Gen Zers with retirement accounts (30%) say their confidence in the U.S. stock market decreased in the past 12 months, according to the retirement survey. Market fluctuations can be hard to stomach, especially if you’re risk averse. But throughout history, the stock market has always eventually recovered from downturns. And while past performance isn’t indicative of future performance, it does provide some comfort that even the worst stock market crashes ultimately bounced back.
Three in 10 Gen Zers with retirement accounts (30%) say their confidence in the U.S. stock market decreased in the past 12 months, according to the retirement survey. Market fluctuations can be hard to stomach, especially if you’re risk averse. But throughout history, the stock market has always eventually recovered from downturns. And while past performance isn’t indicative of future performance, it does provide some comfort that even the worst stock market crashes ultimately bounced back.» MORE: What To Do When the Stock Market Is Crashing
» MORE: » MORE: What To Do When the Stock Market Is CrashingWhile some may feel apprehensive about the risk of investing in the stock market, it’s arguably riskier to forgo it. Let’s take our earlier example of investing $604 a month for 40 years. We’ll assume 7% returns for investment accounts and 4% returns for savings accounts, the latter of which is generous and a rate currently available on some accounts, but unlikely to be sustained over four decades.
While some may feel apprehensive about the risk of investing in the stock market, it’s arguably riskier to forgo it. Let’s take our earlier example of investing $604 a month for 40 years. We’ll assume 7% returns for investment accounts and 4% returns for savings accounts, the latter of which is generous and a rate currently available on some accounts, but unlikely to be sustained over four decades.Despite the same total amount contributed, the retirement balance at the end of these two scenarios is very different. With 7% returns, you’d end up with the $1.5 million we calculated before. But with 4% returns from a savings account, it would be less than half that, at around $704,000. And this doesn’t take into account lost employer matches or tax advantages that often come along with investing in retirement accounts.
Despite the same total amount contributed, the retirement balance at the end of these two scenarios is very different. With 7% returns, you’d end up with the $1.5 million we calculated before. But with 4% returns from a savings account, it would be less than half that, at around $704,000. And this doesn’t take into account lost employer matches or tax advantages that often come along with investing in retirement accounts.What Gen Zers can do: Diversify and trust the process
What Gen Zers can do: Diversify and trust the processSo how do you invest without feeling like you’re playing roulette? Diversify your portfolio. This means buying a mix of different assets so if one underperforms, your portfolio has a better chance of withstanding the hit.
So how do you invest without feeling like you’re playing roulette? Diversify your portfolio. This means buying a mix of different assets so if one underperforms, your portfolio has a better chance of withstanding the hit.Diversification can be achieved pretty easily with low-cost index funds and a little research. An index fund tracks a market index, like the S&P 500, which tracks the stock performance of 500 major U.S. companies. There are index funds for U.S. companies of different sizes — large-cap, mid-cap and small-cap — as well as international funds, bond funds and more. Index funds themselves are diversified, but you can strengthen your portfolio further by choosing a handful of funds that track different markets or asset classes.
Diversification can be achieved pretty easily with low-cost index funds and a little research. An index fund tracks a market index, like the S&P 500, which tracks the stock performance of 500 major U.S. companies. There are index funds for U.S. companies of different sizes — large-cap, mid-cap and small-cap — as well as international funds, bond funds and more. Index funds themselves are diversified, but you can strengthen your portfolio further by choosing a handful of funds that track different markets or asset classes.» MORE: How to Diversify Your Portfolio
» MORE: » MORE: How to Diversify Your PortfolioIt can be easy to deprioritize a financial goal that’s decades away, like retirement savings, when dealing with more pressing money concerns, like student loan payments or just living expenses in general. But getting started — whether it’s with $50 or $500 — and investing consistently can truly make the difference for your financial future.
It can be easy to deprioritize a financial goal that’s decades away, like retirement savings, when dealing with more pressing money concerns, like student loan payments or just living expenses in general. But getting started — whether it’s with $50 or $500 — and investing consistently can truly make the difference for your financial future.Methodology
MethodologyThis survey was conducted online within the United States by The Harris Poll on behalf of NerdWallet from July 8-10, 2025, among 2,087 U.S. adults ages 18 and older, among whom 293 are Gen Zers. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact press@nerdwallet.com.
This survey was conducted online within the United States by The Harris Poll on behalf of NerdWallet from July 8-10, 2025, among 2,087 U.S. adults ages 18 and older, among whom 293 are Gen Zers. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact press@nerdwallet.com.Disclaimer
Disclaimer DisclaimerNerdWallet disclaims, expressly and impliedly, all warranties of any kind, including those of merchantability and fitness for a particular purpose or whether the article’s information is accurate, reliable or free of errors. Use or reliance on this information is at your own risk, and its completeness and accuracy are not guaranteed. The contents in this article should not be relied upon or associated with the future performance of NerdWallet or any of its affiliates or subsidiaries. Statements that are not historical facts are forward-looking statements that involve risks and uncertainties as indicated by words such as “believes,” “expects,” “estimates,” “may,” “will,” “should” or “anticipates” or similar expressions. These forward-looking statements may materially differ from NerdWallet’s presentation of information to analysts and its actual operational and financial results.
NerdWallet disclaims, expressly and impliedly, all warranties of any kind, including those of merchantability and fitness for a particular purpose or whether the article’s information is accurate, reliable or free of errors. Use or reliance on this information is at your own risk, and its completeness and accuracy are not guaranteed. The contents in this article should not be relied upon or associated with the future performance of NerdWallet or any of its affiliates or subsidiaries. Statements that are not historical facts are forward-looking statements that involve risks and uncertainties as indicated by words such as “believes,” “expects,” “estimates,” “may,” “will,” “should” or “anticipates” or similar expressions. These forward-looking statements may materially differ from NerdWallet’s presentation of information to analysts and its actual operational and financial results. About the author Erin El Issa Erin El Issa Erin El Issa is a credit cards expert and studies writer at NerdWallet. Her work has been featured by USA Today, U.S. News and MarketWatch. See full bio. More like this Investment Basics Investing