4 Top Retirement Fears for Gen Z
Written by
Crystal Mayer
Edited by
Zuri Anderson
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No generation is immune from retirement fears. For post-millennials, retirement woes include outliving their money, high inflation, and running out of social security.
The good news is that even the oldest Gen Zers have decades to save before they quit their 9-to-5.
Here are the top 4 retirement fears for Gen Z and how to overcome the worries.
Running Out of Money
One of the most common concerns among all generations, including Gen Z, is running out of money.
According to BlackRock’s 2024 Read on Retirement report, 69% of Gen Z respondents were “worried about outliving their retirement savings.” The good news is that 77% felt they were on track to retire however they wanted.
The young generation is confident, and for good reason. Northwestern Mutual’s Planning and Progress Study 2024 found that Gen Zers started saving for retirement at age 22, almost a decade before the average person who was 31 when they began putting money away.
Many Zoomers, as reported in the study, hope that starting early would help them to retire early. It is also a good idea given Gen Zers expect to need over $1.6 million to retire comfortably.
Soaring Inflation
Another concern facing Gen Zers is soaring inflation. The generation has come of age during difficult financial times.
Facing nearly record-high inflation, Gen Zers have had an uphill battle to build wealth. While Gen Z has significantly less student loan debt than its millennial and Gen X counterparts, it is far from debt-free.
The generation, who also has lower incomes compared to their predecessors, has had to deal with exorbitant food prices and a brutal housing market. A large portion of their income goes to rent, utilities and other necessities, as opposed to savings.
Despite these hurdles, Gen Z is still putting money away. They understand the power of compounding and are not afraid to max out their retirement contributions.
Even without some of the advantages that other generations had, like pensions and easier entry into the workforce, Zoomers are laser-focused and make their own way.
Social Security Will Be Insufficient
Gen Zers also worry about whether they will have access to Social Security.
According to a Social Security survey conducted by The Harris Poll on behalf of Nationwide, nearly half (45%) of Gen Z believes they will not see any of the Social Security benefits they have earned. Additionally, 76% of Gen Z respondents think they will need to work throughout retirement because Social Security will not pay them enough.
On the bright side, Gen Z is refusing to sit idly by. Instead, the generation is eager to get the help they need to make smart money decisions.
The survey found that 43% of Zoomers “plan to ask a financial professional about Social Security benefits.” This is significantly more than previous generations, including just 22% of Gen Xers and only 6% of baby boomers.
Homeownership Is Out of Reach
A final obstacle many Gen Zers face that worries them about the future is the ability to purchase property. Homeownership is often key for retirement.
Many people use their house as part of their retirement plan, investing in it and paying down the mortgage, making it a sizable asset. Unfortunately for Gen Z, homeownership is not so easy.
Housing nationwide has become unaffordable for the average person, including Gen Zers. As a result of the crisis, many of this generation have opted to return to their childhood homes.
While owning a house may not be in some Zoomers’ immediate future, living at home can have its advantages. Foremost, the generation is ahead of the game when it comes to saving.
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