The majority of Americans in their 50s are worried about running out of money in retirement — here’s what you can learn from your adult kids

There’s also a sense of urgency. According to a survey by Prudential Financial, Americans in their 50s fear they’ll outlive their savings. Meanwhile, the following habits embraced by younger generations — particularly millennials and Gen Z — could prove instructive for their elders who are nearing retirement.

Using budgeting and savings apps

Sometimes called “digital natives,” younger Americans have grown up with easy access to online tools and apps to track spending and savings goals. For many in their 20s and 30s, using apps like YNAB (You Need a Budget), Acorns, or even simple spreadsheets has become second nature. It makes it easier to understand where every dollar goes, identify waste, and prioritize spending that aligns with their goals.

As retirement approaches, older Americans could benefit from adopting a similar digital budgeting strategy to ensure they don’t run out of money. Apps can help you track spending, highlight areas where cutbacks can be made, and help you build a realistic retirement budget that stretches your savings.

Adopt a ‘gig’ mentality for extra income

Millennials and Gen Z have embraced the gig economy more than Gen X and boomers. According to Upwork’s Freelance Forward survey, more than half of all Gen Zers and 44% of millennials performed freelance work in 2023. Only 30% of Gen X and 26% of boomer professionals did the same. Whether driving for a ride-sharing service, freelancing, or selling products online, younger generations aren’t solely relying on their primary jobs for financial stability. This flexibility allows them to save more for the future or pay down debt more aggressively.

Older Americans nearing retirement can benefit from this mindset. If you’re worried about running out of money in retirement, consider ways to generate additional income without returning to a traditional full-time job. Consulting in your area of expertise, part-time remote work, or even taking on a passion project can help supplement retirement savings while keeping you engaged and active.

Thinking like your kids and exploring part-time gigs or freelance opportunities that match your skills can boost your income in retirement and reduce financial stress.

Invest early and often

One financial mantra younger generations have absorbed is the importance of investing early. According to Vanguard’s How America Saves report, 401k participation rates are up 10% over the past 10 years among workers between the ages of 25 and 24. And with the proliferation of low-cost investment platforms such as Robinhood and Betterment, millennials and Gen Z are entering the market early and saving aggressively.

While those in their 50s may feel it’s too late to make significant gains, that’s not necessarily true. Even a decade of consistent investing can make a difference in retirement savings.

Rethink traditional retirement plans

One notable trend among younger workers is their willingness to rethink what retirement looks like. According to a survey from retirement fintech provider IRALogix, Millennials are less fixated on working until a set retirement age and stopping completely. They are more interested in semi-retirement, working part-time, or pursuing passion projects well into their older years. It’s a flexible approach that can also benefit older Americans.

Retirement doesn’t have to mean completely stepping away from income-generating activities. By adopting a similar mindset, those in their 50s and 60s can alleviate the pressure of stretching savings over a long retirement. You don’t need to retire fully at 65 — working part-time or pursuing passions can help reduce financial strain while keeping you active.