Realistic or delusional? Gen Z plans to retire at the age of only 54 — the soonest of all generations. But here's what the data really says

The young’uns seem to have reset their expectations from a year ago, when Gen Z planned on retiring at age 49, Empower says.

But even after this adjustment, is Gen Z’s retirement goal too lofty to achieve? Here’s what the data really says.

Is Gen Z setting realistic goals?

Having a $1 million nest egg was long considered the standard for a comfortable retirement, Americans now expect they’ll require $1.27 million, according to a study from Northwestern Mutual.

But many members of Gen Z are just starting their careers while grappling with high inflation, high interest rates and pricey student loan payments. Factoring in essential costs, plus any amount used to pay down debt, there might not be much left over after each paycheck to put toward retirement.

Although some economists have bandied about the idea of a great wealth transfer from older generations to their children, it doesn’t seem like many are counting on it. Empower’s survey shows 67% of respondents value being able to take care of themselves today over passing on wealth to future generations, including 75% of the boomer generation.

How Gen Z can get on track

Whether they’re hoping to shed their blazers and briefcases early in life or are simply aiming to simply retire at some point, Gen Z isn’t without options to prepare for the future.

The best way to get started is to keep track of your spending by creating a budget. This can be as straightforward as keeping track of your income and expenses on a spreadsheet, or you can use tricks such as the “cash stuffing” technique.