5 Strategies Gen Z Intends to Use for Retirement — Are They Ready Financially?

Gen Z's Retirement Planning: Many Gen Z individuals are proactively saving for retirement, with a strong understanding of financial literacy and compounding interest, despite facing challenges like the pandemic.

Retirement Aspirations: A significant portion of Gen Z (65%) prioritizes traveling during retirement, while 58% wish to spend more time with family and friends, indicating a desire for experiences over material wealth.

Savings Challenges: While Gen Z is saving earlier than previous generations, their average 401(k) balance of $13,500 is below recommended targets, and many have withdrawn funds from retirement accounts, highlighting the need for better savings strategies.

Entrepreneurial Spirit: Over a quarter of Gen Z respondents envision starting a new business in retirement, reflecting their experience with multiple jobs and side hustles, which may influence their approach to work and leisure in later years.