Forget the traditional picture of retirement filled with rocking chairs. A recent YouGov survey reveals a fresh perspective on retirement for Gen Z and millennials, highlighting some intriguing trends and contrasting viewpoints.
The survey dives into their desired retirement age. Both generations share a surprising ambition, with roughly 3% aiming to retire before 40. However, Gen Z appears slightly more bullish on early retirement, with 14% planning for an escape between 40 and 50 compared to 8% of millennials. While a significant portion of Gen Z leans toward a more traditional 61 to 70 retirement window, Millennials skew toward a more optimistic picture, with the largest group (30%) targeting that sweet spot between 51 and 60.
Financial preparedness reveals more differences. A noteworthy 14% of millennials believe less than $500,000 is sufficient for a comfortable retirement, a view less prevalent among Gen Z, with 8% sharing this sentiment. The majority of Gen Z anticipates needing between $500,000 and $1 million. A higher proportion of millennials (26%) project they’ll need between $1 million and $2 million, suggesting loftier financial aspirations or perhaps a more realistic appraisal of future economic conditions.
Both generations boast their share of high savers, with around 15% to 16% believing they’ll require over $2 million. A significant portion of both groups (21% Gen Z and 22% millennials) feels uncertain about the necessary savings amount, highlighting the confusion surrounding retirement planning.
Millennials may be surprised to learn that they could need significantly more funds to retire comfortably because of high cost-of-living projections and substantial recommended retirement savings targets. Financial experts suggest that, depending on various economic factors including inflation, millennials may need between $3 million and $4 million to ensure a comfortable retirement. To achieve this goal by 2045, when most will be in their 50s, they will likely need to aim for the higher end of this range.
While both generations are keen to retire earlier than traditional norms, their financial projections suggest varying degrees of confidence and realism about the economic challenges ahead.
