$1 million at retirement<\/a> was a decent goal as sensible spending could make that money last until a retiree dies.<\/p>\nIn reality, $1 million today will have a third of its purchasing power in 2070 because of inflation, Von Ahsen said. <\/p>\n
Because of that, Gen Z should aim for $3.7 million saved by 65 to have a comfortable retirement. That\u2019s because that figure in 2070 has roughly the same purchasing power as $1 million today. <\/p>\n
Here\u2019s how much Gen Z needs to save every month to reach that goal. The numbers below assume that your money earns interest of around 10 percent every year – a good rule of thumb for the kind of investments found in retirement accounts – and that inflation is around 3 percent every year:<\/p>\n
20 years old: Around $420 month 25 years old: Around $585 a month 29 years old: Around $770 a month. <\/p>\n
\u201cThose figures assume consistent monthly investing,\u201d Von Ahsen said. \u201cThey’re illustrations and not promises, but they show how much starting early can reduce the amount you need to contribute.\u201d<\/p>\n
That said, $420 a month may not be in the cards for a 20-year-old navigating high prices for everything from groceries and gas to housing. <\/p>\n
\u201cFor some, balancing rent, student loans, and an entry-level [paycheck], several $100 a month can be a significant stretch,\u201d Von Ahsen said.<\/p>\n
Generational advantage<\/p>\n
The beauty of being Gen-Z is that time is on their side. They have decades to let their contributions and compound interest build their balance toward a comfortable retirement nest egg that has enough purchasing power to last them the rest of their life. <\/p>\n
Once retirement hits, individuals start pulling money out of their retirement accounts – sometimes without taxes – to pay for everyday expenses such as medical bills, housing and groceries. <\/p>\n
That\u2019s why it\u2019s important to make contributions to a retirement account – 401(k)s and IRAs are popular choices – instead of stashing money in a savings account. <\/p>\n
The investments in those accounts usually build exponential returns over time through compound interest. So, even a small amount invested each month – $50, for example – has the potential to create big returns by the time you retire. <\/p>\n
\u201cYou don\u2019t need to have retirement figured out to start preparing for it,\u201d Nassau Financial Group CGO Tom Buckingham told The Independent in an email. <\/p>\n
\u201cStart with what works for your budget, make saving a habit and increase it as your income grows. Time gives this generation an advantage that\u2019s hard to make up for later.\u201d<\/p>\n
Contribution conundrum<\/p>\n
Gen Z should plan to increase their contribution amounts as time goes on and they make more money, to ensure the money they stash away for retirement has a good chance of lasting through their golden years. <\/p>\n
One way to boost payments when you\u2019re younger is to contribute to a workplace 401(k). <\/p>\n
Most have employer matches, which means the employer will also contribute to the account when the employee makes contributions (up to a certain limit). <\/p>\n
Another way to keep retirement contributions on track is to save up an emergency fund that can cover three to six months of expenses. Doing so means you may not have to dip into money you\u2019d use for contributions to cover the cost of an unexpected expense or job loss.<\/p>\n
\u201cMy one takeaway message would be to start with what you can afford today and make increasing it part of your plan,\u201d Von Ahsen said. \u201cYou don’t need to have your entire financial life figured out to begin. The most important part is getting started.\u201d<\/p>\n
This article is sponsored by Credit Karma. We may earn a commission if you engage with their services using links in this article.<\/p>\n","protected":false},"excerpt":{"rendered":"Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Membership today.…\n","protected":false},"author":2,"featured_media":628466,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[138,246,111,139,69,244,245],"class_list":["post-628465","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-finance","tag-new-zealand","tag-newzealand","tag-nz","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/628465","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=628465"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/628465\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/628466"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=628465"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=628465"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=628465"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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<\/p>\n![\"Gen](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/10\/GettyImages-473981026.jpg\")
Gen Z – those aged 14 to 29 – are currently in that sweet spot to make serious headway long before retirement (Getty Images for Stella Artois)<\/p>\n