Gen Z and Millennials Surveyed on Early Retirement Goals

A 2024 YouGov survey highlighted differences in retirement expectations between Gen Z and millennials, with many younger workers anticipating earlier retirement than previous generations. According to the survey, 37% of Gen Z respondents estimated they could live comfortably on $500,000 to $1 million, and 14% aimed to retire in their 40s.

This contrasts with millennials, who typically projected needing $1 million to $2 million for retirement.

Fortune reported that Gen Z's plans involve working for about two decades and then relying on savings for up to 60 years, given an estimated life expectancy of around 100 years. Less than 2% of Gen Z and millennials expect to retire after age 70, despite ongoing discussions about raising the full retirement age. Meanwhile, at least 10% of both generations indicated they never plan to retire.

The survey also noted that most millennials anticipate retiring between ages 51 and 60, which is earlier than the current U.S. average retirement age of about 64. Separate research from the Pew Research Center showed that the number of Americans working past age 65 has quadrupled since the 1980s.

Additionally, 18% of baby boomers and late Gen Xers have returned to work or plan to, as their pensions fall short due to higher-than-expected living costs.

For older generations, challenges include the fact that 24% of respondents found their retirement income insufficient, and nearly half of those who retired early during the pandemic experienced poverty. The average American believes $1.46 million is needed for a comfortable retirement, according to other studies.

These trends suggest that current economic conditions are affecting retirement feasibility across age groups.

Financial expert Suze Orman advised that early investment could help Gen Z and millennials achieve millionaire status through compound growth. For instance, investing $100 monthly at a 12% annual return could accumulate approximately $1.18 million in 40 years.