Retirement Will Look Different for Every Generation — Here’s How To Rethink Yours
Written by
Angela Mae Watson
Edited by
Jenna Klaverweiden
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There’s no “one-size-fits-all” to retirement planning, but the way people go about it varies by generation. You can look to those who came before to get a sense of what they did. But in the end, you’ll need to tailor your own plan to your needs, goals and timeline.
How might this look for you? And how can you rethink your retirement plan? Here’s what you should know.
Retirement Planning by Generation
Every generation grows up with their own beliefs and circumstances. If you were to ask a boomer how they planned out their retirement, their answer will probably be different from what their parents or grandparents did. Younger generations also have their own take.
How each generation goes about retirement planning is largely based on economic backdrop and workplace structures. These have changed significantly over the decades. Just take a look at boomers.
“Our baby boomer clients are more likely to have had access to defined benefit pensions, so retirement planning for them tends to be centered on coordinating a pension with Social Security and personal savings,” said Troy Brodie, senior vice president at Western & Southern Life and president at W&S Agency Group.
Then, consider those who’ve come next. “Defined contribution plans have largely replaced pensions in the private sector, so our millennial and Gen Z clients are typically more reliant on 401(k)s, IRAs and personal investing,” Brodie said. “That setup shifts more responsibility and risk onto the individual.”
But even between these younger generations, Brodie noted distinctions — mostly in timing and behavior as opposed to strategy.
Rethinking Your Retirement Plan
Most people retire at age 62, according to MassMutual’s 2024 Retirement Happiness Study. That means most boomers have already left the workforce. It also means the ones who need to rethink their retirement plan the most may be millennials and Gen Z.
Brodie said both generations should be prioritizing three main things:
- Saving early
- Managing debt
- Investing for long-term growth.
Being younger, Gen Z has the advantage of time on their side. They also have greater access to digital tools and financial education — two resources millennials may not have had until later on.
Millennials tend to earn more than Gen Z, which plays a role. The Bureau of Labor Statistics shows the following median earnings by age in the third quarter of 2025 (full-time workers):
- 16 to 19 years: $32,344 annually
- 20 to 24 years: $41,392 annually
- 25 to 34 years: $59,800 annually
- 35 to 44 years: $72,020 annually
- 45 to 54 years: $71,604 annually.
But as Brodie pointed out, many millennials also deal with childcare, mortgages and other major expenses that can make it harder to save up for retirement.
Retirement Is Changing
Retirement for older generations isn’t the same as it is for younger ones. So if you’re following an older model, it might be time for a change.
“We’re honestly seeing that the definition of retirement is evolving. For older generations, the benchmark was retiring with a nest egg at 65, but for younger generations like millennials and Gen Z, we’re seeing a goal for ‘financial wellness’ and early independence,” said Dan Beck, CEO and founder of 401GO.
For these individuals, phased retirements and second careers are becoming the norm. But so is a plan that includes not only the standard 401(k) but also IRAs, HSAs and possibly taxable brokerage accounts.
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