These 6 stats show Americans are rethinking retirement — how many apply to you?

Gen Z is confused

Gen Z may be the youngest generation in the workforce, but they’re seasoned vets when it comes to retirement worry. Sixty-three percent of Gen Z workers admit they don’t understand enough about investments to confidently manage their own savings. It’s an important gap, as early investment decisions can have a profound impact on long-term wealth accumulation.

With traditional pensions dying off and the responsibility of retirement planning increasingly shifting to individuals, Gen Z is relying on employers for financial guidance. Many young workers say they use a target date fund (TDF) primarily because they trust in their employer to choose the right investment option for them, highlighting the importance of workplace financial education programs.

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Millennials would stay with employers offering 401(k) match for student loans

Millennials are juggling the dual pressures of managing near-term expenses and saving for the future. With millennial student loan borrowers reportedly carrying an average of around $40,000 in student loan debt, retirement often takes a backseat. BlackRock found that the majority (72%) of millennials would stay with their current employer if their 401(k) plan matched student loan payments.

Many companies offer help when it comes to helping workers pay down student loan debt. By offering student loan repayment matching programs, employers can help millennials manage their debt while simultaneously building their retirement savings.

Gen X is worried about Social Security

Gen X is both the most likely generation to report saving consistently for retirement and the least likely to feel on track. As retirement approaches, nearly 75% believe they won’t have the same level of certainty about having enough in retirement savings as previous generations. This is possibly fueled by uncertainties around the sustainability of Social Security, the decline of traditional pension plans, and insufficient personal savings.

A study by the Transamerica Center for Retirement Studies found that only 17% of Gen Xers are very confident they can fully retire comfortably. Eighty percent are concerned Social Security will not be there for them when they are ready to retire.

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Baby boomers seek secure income

For baby boomers, many of whom are already retired, the need for a secure income stream has new importance. According to BlackRock, 85% of retired boomers said having a guaranteed income in retirement is more crucial than they initially thought.

This shift comes as retirees face market volatility and rising healthcare and long-term care costs. Many retirees are forced to adjust their spending habits in retirement due to unanticipated financial pressures. As a result, products like annuities that offer guaranteed income are becoming increasingly attractive to those looking to secure their financial future. AARP reports that annuity sales hit a record high of $385 billion in 2023, a 23% jump from the previous year, according to LIMRA, a research association serving life insurance and financial services companies.

More women worry about outliving their savings than men

Women face unique challenges in retirement, and these concerns are reflected in the BlackRock survey. Sixty-five percent of women workplace savers express worry about outliving their retirement savings, compared to just 57% of men. Several factors may explain this, including longer life expectancy, the gender pay gap, and the impact of career breaks for caregiving.

The U.S. Centers for Disease Prevention and Control reports that women typically live about six years longer than men, which is the largest life expectancy gap in more than a quarter century.

Working without a plan

Those without access to a workplace retirement plan need to make smart decisions with their money. About 56% of independent savers in BlackRock’s survey reported they are holding at least some of their retirement savings in cash. While cash may feel like a safe option, it often fails to keep pace with inflation, eroding purchasing power over time.