Gen Z and Retirement: Why Now Is the Time to Start Saving
Generation Z, the youngest adult generation in the U.S. (ages 18–28), has time on its side when it comes to retirement planning. But for many Gen Zers, saving for retirement hasn’t yet become a top priority.
According to CreditVana’s Financial Goals Midyear Check-In Report, fewer than 1 in 5 Gen Zers (18%) say they’ve contributed to a retirement account in 2025. This hesitation may stem from a variety of factors — including lack of urgency, limited financial literacy, or simply not having the extra funds to start saving.
Another CreditVana retirement-focused survey, conducted online by The Harris Poll, reveals that many Gen Zers may not believe retirement savings are essential. Some even express doubt in the stability of the U.S. stock market. If you’re in that boat, here are key insights and actionable tips to help you start building a financial cushion — so you can retire on your terms, even if it feels far away.
Many Gen Zers Expect to Work Forever
The survey found that 75% of Gen Z respondents expect to remain in the workforce as long as they’re physically able. While that may feel like a realistic plan now, things can change — due to health, caregiving responsibilities, or simply a change in lifestyle desires. Regardless of your current outlook, preparing for the possibility of retirement is a wise move.
What Gen Z Can Do: Stay Open to Change and Set a Goal
Retirement savings give you the freedom to choose — including the choice to stop working. Even if you’re not planning to retire anytime soon, start with a savings goal. It doesn’t have to be perfect; it just needs to exist. A retirement calculator can help estimate how much you might need down the road.
It’s hard to visualize your future self — but life rarely stands still. You may encounter life events that limit your ability or desire to work later. Saving early means protecting your future options and reducing the chances of retiring into financial stress.
Over 40% of Gen Z Think Social Security Will Be Enough
Once you have a goal in mind, you might wonder how much of it Social Security will cover. The truth? Likely not enough.
According to CreditVana’s retirement survey, 43% of Gen Zers believe Social Security will be sufficient to live comfortably in retirement. But in reality, Social Security is designed to replace only a portion of your income — around 40%, depending on your earnings history.
As of June 2025, the average monthly Social Security benefit for retired workers was $2,005. However, the 2025 Social Security Trustees Report predicts that by 2034, the program’s trust funds may be depleted, reducing benefits to 81% of promised payouts. That means Gen Z could face significantly smaller checks than previous generations.
What Gen Z Can Do: Start Saving Early
While retirement may feel irrelevant in your twenties, it’s actually the best time to start saving. If Social Security remains intact, it will serve as a helpful supplement — not your entire income.
Let’s break it down: If you’re 25 and want to retire with $1.5 million by age 65, you’d need to invest about $604/month for 40 years, assuming a 7% average annual return after inflation. Delay that start by just 10 years, and you’d need to contribute $1,280/month for 30 years to hit the same goal.
By starting now, you’d save roughly $170,000 less out of pocket than if you waited until age 35 — thanks to the power of compounding returns. Even if several hundred dollars a month seems out of reach, something is better than nothing. Consider:
Contributing enough to get your employer’s 401(k) match
Opening a Roth IRA with small monthly contributions
Increasing your savings rate as your income grows
Every dollar counts over time.
Many Gen Zers Don’t Trust the Stock Market
Three in ten Gen Zers with retirement accounts (30%) say their trust in the stock market declined over the past year, according to the CreditVana survey. And it’s understandable — market swings can be nerve-racking. But historically, the market has rebounded after every major downturn.
While past performance doesn’t guarantee future results, history shows that market recoveries do happen — and they benefit long-term investors.
Avoiding the market out of fear may actually be riskier in the long run. Let’s revisit our earlier example: investing $604/month for 40 years at a 7% return yields around $1.5 million. But with a conservative 4% return — closer to what you might get in a high-yield savings account — you’d only end up with about $704,000. That’s less than half, despite contributing the same amount.
What Gen Z Can Do: Diversify and Stay the Course
To invest wisely — and sleep at night — diversification is key. That means spreading your money across a variety of investments so that if one area drops, others can help balance the loss.
One easy way to do this is with low-cost index funds. These funds track broader markets, like the S&P 500, and automatically provide exposure to hundreds of companies. You can also explore funds across sectors, industries, or global markets to increase your diversification.
MORE: How to Diversify Your Portfolio
Consistency matters more than perfection. Even starting with $50 a month can grow into something meaningful over decades.
Final Thoughts: Start Small, Stay Steady
It’s easy to push retirement planning aside when more immediate financial concerns — rent, debt, day-to-day expenses — are front and center. But the earlier you start saving and investing, the more you benefit from compound growth.
Retirement planning doesn’t require a huge income or complex strategies — just a willingness to begin. Over time, small consistent contributions can build into financial freedom later in life.
Methodology
This survey was conducted online within the United States by The Harris Poll on behalf of CreditVana from July 8–10, 2025, among 2,087 U.S. adults ages 18 and older, including 293 Gen Zers. The data’s sampling precision is measured using a Bayesian credible interval of +/- 2.5 percentage points at a 95% confidence level. Subgroup margins of error may vary. For full methodology, including weighting variables and subgroup sample sizes, contact: press@creditvana.com.
Disclaimer
CreditVana disclaims all warranties, express or implied, including merchantability, fitness for a particular purpose, and accuracy of information. Use this content at your own risk. The information is not guaranteed to be complete or current. Forward-looking statements (e.g., “expects,” “may,” “should”) involve risks and may differ from future outcomes.
