![\"Gen](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/06\/cdcf70b8104be3db44b587078af11104.jpeg\")
Gen Z is starting to save for retirement earlier than previous generations, which will likely serve them well.Credit: MoMo \/ Getty Key Takeaways <\/p>\n
Gen Z is starting to save for retirement earlier than previous generations, which will likely serve them well.
Credit: MoMo \/ Getty Key Takeaways <\/p>\n
Gen Z workers have an average 401(k) balance of $13,500, with a 7.2% employee contribution rate that climbs to 10.9% when employer matches are included.<\/p>\n
Gen Z started working with financial advisors at an average age of 23, earlier than any previous generation.<\/p>\n
Despite having the smallest balances, 63% of Gen Z workers say they’re confident they’ll be financially prepared for retirement\u2014higher than any other generation.<\/p>\n
It’s perhaps a timeless pattern that older generations depict the young as reckless with money, less eager to work, and maybe even a worrisome sign of the future. Any such stereotypes need a major update with Gen Z (ages 13 to 28 in 2025), who are saving for retirement earlier than previous generations<\/a> and seeking advice from financial planners far sooner.<\/p>\n According to Northwestern Mutual, Gen Zers who have financial advisors start working with them at an average age of 23, more than two decades earlier than baby boomers<\/a>.<\/p>\n So though Gen Z’s average 401(k) balance<\/a> is the lowest of any generation, that’s more a function of age than generational apathy. Many Gen Zers who are saving for retirement are just a few years into full-time work.<\/p>\n Gen Z’s $13,500 401(k) average covers a wide spectrum, from college students to those already ascending the corporate ladder. Vanguard’s data shows workers under 25 averaging just $6,899 in their 401(k) accounts, with a median<\/a> of $1,948. Data from the Transamerica Center for Retirement Studies shows that those in Gen Z who already have a middle-class income have a median retirement savings of $43,000.<\/p>\n If your balance is close to these figures, don’t be alarmed: that’s expected since you’re likely still in school, working part-time, or in the first years of your first full-time job. You can still start building a foundation of retirement savings<\/a> earlier than previous generations.<\/p>\n Time rewards those who start early. A 20-year-old investing $300 per month at a 7% return would accumulate $1.03 million by age 65. Wait until 30, and the required monthly contribution jumps to about $620. Start at 40, and it’s about $1,360. The longer you wait, the steeper the climb.<\/p>\n Many in Gen Z, despite the turbulent economy of recent years, are saving accordingly.<\/p>\n Important <\/p>\n The typical Gen Zer who works with a financial planner started doing so at an average age of 23, according to Northwestern Mutual.<\/p>\n If you’re in Gen Z and you don’t even have a 401(k) yet, that’s okay. If your employer doesn’t offer one, you can open an IRA<\/a> and automate a monthly contribution<\/a>, even if you can only afford just a modest amount each month. The habit matters more than the monthly figure right now.<\/p>\n","protected":false},"excerpt":{"rendered":"Gen Z is starting to save for retirement earlier than previous generations, which will likely serve them well.Credit:…\n","protected":false},"author":2,"featured_media":491857,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[114,226960,268,4197,85,46,12710,266,267,6300],"class_list":["post-491856","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-employee-contribution-rate","tag-finance","tag-gen-z","tag-il","tag-israel","tag-northwestern-mutual","tag-personal-finance","tag-personalfinance","tag-retirement-savings"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/491856","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=491856"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/491856\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/491857"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=491856"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=491856"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=491856"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}} Starting Small But Starting Early <\/p>\n
Why Saving Earlier Matters <\/p>\n
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