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- Gen Z wants to retire at 61 — years before other generations expect to leave the workforce.
- They face inflation, debt, and, with being newer to the workforce, having less money to save.
- They're seeking professional financial advice from family and friends — and are even open to AI.
Unlike the gloom and doom stories of Gen X, Millennials, and Boomers, Gen Z fully plans to retire … and do it earlier than everyone else, at the age of 61.
That's according to an October survey by Charles Schwab, which found that while other generations are delaying their retirement, Gen Zers who have already started saving fully expect to retire on the early side, and they're seeking advice and resources to make that happen. Schwab surveyed 1,000 employed Americans participating in 401(k) plans in partnership with Logica Research, plus an additional 100 Gen Zers for statistical significance.
The survey found that respondents across generations plan to retire at 66: Age 64 for Millennials, age 65 for Gen X, and age 68 for Boomers.
The survey also found much of Gen Z is already thinking about retirement plans: 73% of Gen Z respondents want personalized investment advice and help choosing investments for their 401(k)s.
And they're willing to let AI provide that help.
Gen Zers thinking about retirement are hungry for advice
Since they still have a bit of time before retirement gets close, paired with facing inflation, monthly bills, and unexpected expenses, 55% of Gen Zers think that their financial situation warrants professional advice. They are tapping into several sources, including family and friends and financial resources through their 401(k) plan and employers.
Gen Z is also willing to get advice from AI-based digital tools for financial planning. A full 75% of Gen Z respondents say they'd be comfortable asking artificial intelligence "like Chat GPT" for help with financial planning, compared to 49% of respondents across generations. Only 3% say they would never consider the tool for help with their money, compared to 12% across generations.
Being that Gen Zers grew up with computers and YouTube videos, it makes sense they are much more comfortable than older generations getting financial advice online, up to and including AI.
The youngest generation in the workforce is asking for help with managing debt, how to catch up on their retirement plan goals, and managing current expenses so there's more money to save for retirement. They're feeling the effects of inflation while being newer to the workforce, so they have less money to save — and the money they do have is impacted by high prices and expenses. They are the generation seeking to do more with less.
Gen Z is smart to be thinking about retirement now and to take steps to retire a little early. With the lingering effects of inflation and debt, getting started early and being diligent about saving for retirement is the only way to make that happen.
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