5 Ways Gen X, Millennials and Gen Z Differ Over Retirement Goals
Written by
Vance Cariaga
Edited by
Jenna Klaverweiden
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Retirement goals are influenced by numerous factors, ranging from your age and income to your lifestyle preferences. Although certain common goals apply to nearly everyone — including the need to start saving money as early as possible — different generations tend to have different retirement goals.
A recent survey of 1,013 U.S. adults conducted by Empower found that most Americans put a high priority on basic financial security in retirement, regardless of generation. More than two-thirds of respondents (68%) value the ability to pay their bills on time when they are retired. A slightly lower percentage (63%) want to live debt-free, while more than half (55%) want to own a home outright.
There were some key generational differences, however. Here are five ways Gen Xers, millennials and Gen Zers differ over retirement goals.
Retirement Savings
In the Empower survey, nearly half (46%) of Gen Z respondents said they are most likely to feel happiness in retirement by achieving a savings goal — the highest percentage of any generation.
That aligns with research conducted by others. Saving money is the No. 1 financial goal of Gen Z, according to a study cited by the National Association of Plan Advisors. That same study found that two-thirds of Gen Z workers say that participating in employer-provided retirement plans is “very important.”
High Quality of Life
Millennials are the most likely to prioritize quality of life in retirement, with more than half (51%) of those surveyed by Empower saying that a high quality of life is important.
A similar percentage of millennials (56%) said happiness in retirement comes from homeownership — more than any other generation.
Leaving an Inheritance
Leaving an inheritance is more important to Gen X than other generations. More than 4 in 10 Gen Xers (42%) said happiness in retirement comes from leaving behind an inheritance for their children, according to the Empower survey.
Low Cost of Living
Cost of living is another area that Gen Z puts a higher priority on than other generations. According to the Empower survey, nearly half (46%) of Gen Zers believe that low living costs in retirement are important.
Travel
Among all respondents in the Empower survey, 42% said happiness in retirement means traveling the world, while 16% said they could see themselves retiring in another country. Along generational lines, Gen Zers put the highest priority on travel, with 44% setting a goal for a travel fund in retirement.
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