4 Retirement Planning Lessons That Gen X Can Learn From Gen Z

Girls using smartphone outdoors. Colorful background stock photo
Pedro Merino Higueras / iStock.com

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

Gen Z may still be the new kids in town, but they’re already proving their financial ambition — and making great progress toward reaching their retirement goals. Many Gen Zers are in much better shape than Gen X, which is concerning, given that retirement is much closer on the horizon for Gen X than it is for Gen Z.  

According to Guardian’s 2024 Mind, Body, and Wallet Report, retirement-related concerns are a leading source of stress for Americans. Many worry they won’t have enough to ride out a comfortable retirement. Gen Xers are profoundly feeling the brunt of the stress of retirement approaching. The report found that for the first time in years, members of Gen X reported slightly worse financial wellness than Gen Z (27% vs. 31%). 

Gen Z may be less concerned about retirement because it’s still far away, but they’re still making savvy moves to position themselves for a successful retirement. Gen X can learn a lot from Gen Z. GOBankingRates spoke with financial experts to discover four retirement planning lessons Gen X can learn from this younger generation

Talk About Money More Openly

Gen Z values transparency and they tend to talk about money pretty openly. Gen X should do the same. 

“It was considered rude and in poor taste to discuss money in our parents’ day, but Gen Z is benefiting from a much more open discourse,” said Erika Kullberg, personal finance expert, attorney, money influencer and the founder of Erika.com. “Being open about income, budgeting, debt and other tricky financial topics is a great way to learn from your peers.” 

Today's Top Offers

Adapt To and Embrace Technology 

Gen Z members were raised in a world of fast-paced technology. They take advantage of it to help them get financially on track. Gen X should do the same. 

“From free budgeting apps to joining online banks that offer better interest rates to getting assistance from a robo-advisor, Gen Zers know there is no shortage of ways they can use technology to their retirement savings advantage,” Kullberg said. “Gen Xers may be missing out on a lot of helpful retirement resources by not being as open to technology as younger savers.” 

Be Open To Diversifying Income Streams 

A powerful way to save for a comfortable retirement is to have diversified income streams — a tactic that Gen Z understands and is open to. 

“Another key difference is their openness to diversified income streams,” said Brandy Burch, CEO at Benefitbay

“Gen Z isn’t just relying on a single job or career path; they’re exploring gig work, freelancing and side hustles to build additional savings. This flexibility and willingness to adapt are crucial in a world where traditional job security is less of a given.” 

Face the Fact That You Can’t Rely on Social Security 

Gen Z is well aware of the fact that Social Security isn’t enough to comfortably live on, and, what’s worse, is insolvent and could not be as robust by the time they retire. Gen X needs to deal with this fact, too. 

Today's Top Offers

“They must navigate a landscape where Social Security’s future isn’t guaranteed,” Burch said. “That’s why their proactive approach to retirement planning — focusing on saving early, embracing technology and being willing to adapt — is both necessary and forward-thinking.” 

BEFORE YOU GO

See Today's Best
Banking Offers

Looks like you're using an adblocker

Please disable your adblocker to enjoy the optimal web experience and access the quality content you appreciate from GOBankingRates.

  • AdBlock / uBlock / Brave
    1. Click the ad blocker extension icon to the right of the address bar
    2. Disable on this site
    3. Refresh the page
  • Firefox / Edge / DuckDuckGo
    1. Click on the icon to the left of the address bar
    2. Disable Tracking Protection
    3. Refresh the page
  • Ghostery
    1. Click the blue ghost icon to the right of the address bar
    2. Disable Ad-Blocking, Anti-Tracking, and Never-Consent
    3. Refresh the page