Gen Zers Are Eyeing an Early Retirement

Many Gen Zers may still be entering the workforce, but this generation is already thinking about their retirement plans. And much like their discrepant views on everything from how they get their news to how frequently they travel, their views on retirement are different from their older counterparts. 

3 in 5 Gen Zers expect to retire by age 65

Americans can start receiving social security benefits as early as age 62, but many Gen Zers are planning to start their retirement even earlier than that milestone.

Six in 10 Gen Zers say they plan on retiring at age 65 or younger, 10 points higher than the general population. This gap is due to more Gen Zers wanting to retire by age 60: 35% of Gen Zers say they expect to retire by age 60, compared with 26% of the general population.

But even the oldest Gen Zers have at least 30 more years in the workforce before they near retirement age, and many obstacles could prohibit them from achieving early retirement like record high inflation and student loan debt. 

Gen Zers have already started saving for retirement

Still, the best thing Gen Zers can do to ensure they reach their target retirement age, or close to it, is saving now. While retirement falls to the bottom of the list of Gen Z’s current savings priorities, 30% of Gen Zers who say they have money saved say they are saving for retirement.

Those Gen Zers are sure to thank themselves later. The money that they’re saving now, even if it’s a small amount, will compound over time, meaning they have more potential to benefit from their savings. Many Gen Zers are heeding this advice from financial TikTok, or FinTok, and its growing ranks of finfluencers creating content with financial tips and tricks.

Our financial services trend tracker shows that nearly a third (31%) of Gen Zers said they sought financial advice from social media in November 2023 — the top category outside friends and family. That figure is nearly double the share of U.S. adults overall, and one of the highest rates of any demographic.  

Many Gen Zers say they’ll still work during retirement

While retirement is traditionally viewed as a complete stop to working, Gen Zers don’t necessarily see it that way.

Roughly 4 in 10 Gen Zers (41%) say they’ll continue to partially work during retirement, 11 points higher than the general population. This could signal not only differing attitudes from older Amercians on retirement, but also work in general.

Our previous research shows Gen Zers are less likely to say they feel engaged when working compared with the general population. As a result, these young workers may feel less attached to their career or employer, and more likely to pick up a side hustle to afford the things they want in life — a mindset that won’t be cast aside even later in life. 

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