Dec 29, 2025
Gen Z: barely out of homeroom and already thinking about hanging it up.
Billionaire Robinhood CEO Vlad Tenev noted in a recent episode of Jack Altman’s Uncapped podcast (1) that younger Americans are “opening retirement accounts at 19 years old,” claiming they’re more conservative and financially literate than older generations.
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Tenev contrasted that with his own 20s, when retirement “seemed really, really far away.” But the numbers behind this early retirement focus tell a more complicated story.
Yes, younger adults are starting earlier, but much of that urgency appears fueled by anxiety about debt, housing costs, inflation and whether Social Security will still be there when they finally clock out. (2) A 2025 survey by the American Society of Pension Professionals and Actuaries found eight in 10 U.S. workers believe they’ll have more difficulty reaching financial security than their parents. (3)
So are younger workers unusually forward-thinking, or just reacting to a tougher economy?
To answer that, it helps to zoom in on what Gen Z is actually doing, how it compares with older generations, and what any would-be retiree can learn from their early start.
Gen Z really is starting earlier — but not from a place of comfort
Tenev’s not making it up: there’s real evidence that Gen Z is engaging with retirement savings much earlier than previous cohorts.
Recent Vanguard research finds that about 47% of workers aged 24 to 28 are on track to maintain their current standard of living in retirement (4), a higher share than Gen X or baby boomers.
A 2024 study by The Investment Company Institute (ICI) found the share of Gen Z households with defined contribution (DC) retirement plan accounts is more than three times (5) the share of Gen X households at the same age in 1989.
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“Thanks to the prevalence of 401(k)s and other DC retirement plans in the workplace, as well as the growing adoption of automatic enrollment in and automatic investing through these plans, the long-term financial outlook for Gen Z is promising,” said ICI Senior Director of Retirement and Investor Research Sarah Holden.
But this isn’t a generation calmly coasting toward FIRE (financial independence, retire early). Recent data from Transmerica shows plenty of strain: about one in four Gen Z workers has already dipped into retirement savings via hardship or early withdrawals (6) – suggesting that while Gen Z is more likely to have a retirement account, many of them may not have enough when they hit their 60s.
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Most Americans are behind — and the bar keeps moving
To see why Gen Z is nervous, it helps to look at the broader retirement picture they’re inheriting.
Across all ages, the average retirement savings is roughly $334,000, according to Federal Reserve data. (7) That big number hides a harsh reality: many households have little or nothing saved. (8)
Meanwhile, the “ideal” targets keep getting bigger. Fidelity’s often-quoted guideline says a worker should aim to have one year of their annual salary saved by 30, three times their salary by 40, six times by 50, eight times by 60, and 10 times by age 67 to maintain their lifestyle in retirement.
How young workers can get ahead — and how late starters can catch up
For Gen Z, and anyone else trying to avoid retirement stress, a few principles matter more than the generational labels:
Start early
Thanks to compound growth, a 25-year-old who invests $300 a month for 40 years can end up with more than someone who waits until 35 and saves twice as much.
Grab the free money
If there’s a 401(k) match at work, make it a priority to contribute at least enough to get the full match: an immediate, risk-free return many people overlook.
Automate your savings
If saving 10% to 15% of your income is the long-term goal, start by saving 4% to 5% and nudging it up by one percentage point every year until you can get there without blowing your monthly budget.
Avoid raiding your retirement accounts
Early withdrawals trigger taxes, penalties and lost growth, which is the pattern hurting many Gen Z savers today. Building even a modest emergency fund on the side can help keep those accounts untouched.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
YouTube(1); AARP (2); American Society of Pension Professionals and Actuaries (ASPPA) (3); Vanguard (4); ICI (5); TransAmerica Institute (6); Federal Reserve (7).
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Chris Clark is a Kansas City–based freelance contributor for Moneywise, where he writes about the real financial choices facing everyday Americans—from saving for retirement to navigating housing and debt.
