4 Signs Gen Z Retirement Savings Are Too Low for 2026
Gen Z is saving for retirement earlier than any generation before it. A study by Northwestern Mutual found the average Gen Z worker started saving at 22, 10 years earlier than Gen X. That’s a good thing.
But Americans today say they need $1.46 million to retire comfortably, up more than $200,000 since 2025 and most Gen Zers aren’t on track to get there.
Here are the signs that Gen Z's retirement savings may already be falling short.
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The Retirement Goal Just Keeps Growing
The ‘magic number’ to retire comfortably has grown from $1.26 million in 2025 to $1.46 million in 2026. Inflation, longer life expectancies and the uncertainty that Social Security benefits will run out by 2034 are the main reasons for this jump.
Gen Z plans to retire at 61, four years earlier than the national average of 65. This means Gen Z has to get to that number faster by saving more money. The earlier you retire, the bigger the number and the sooner you need to hit that.
Gen Zers Have Saved Less Than Their Annual Income
About 25% of Gen Zers have less than their annual income saved for retirement — the highest among all generations. Another 11% have saved the equivalent of just one year’s income.
That’s more than a third of Gen Z falling behind on retirement savings. Most are sitting on a nest egg that would not pay for even one year of their current lifestyle, never mind retirement.
Reduced Confidence
The study showed Gen Z is the most confident generation, with 58% saying they will be financially ready for retirement, compared to 63% in 2025. That decline suggests Gen Zers are beginning to feel the gap between where they are and where they need to be.
AI Anxiety
For many people, how much you put toward retirement depends on your income and income depends on career stability. About half of Gen Z (46%) say they feel very pessimistic about the impact of artificial intelligence on their careers. If artificial intelligence (AI) disrupts their careers, this could negatively impact employer benefits access and the time it would take to save for a comfortable retirement.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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