Stat: Gen Z’s retirement savings outdo older generations

Young people are acting now and prioritising putting money away for later in life. Gen Z workers aged 18–25 are saving on average 14% of their income for retirement, according to a new study by investment management company BlackRock, compared with 12% for Millennials, Gen X and Boomers.

As confidence over being on track with retirement savings dips across all generations due to inflation and uncertainty, at 69%, Gen Z have the highest proportion of savers who think they’re getting it right. Having grown up during times of huge financial instability, this generation have received the message that they alone have the responsibility to get started. ‘Gen Z was raised in households where there was a need to save for retirement… and the message is out there that you’re on your own, that you need to start saving early,’ Anne Ackerley, head of BlackRock’s retirement group, explains to CNBC.

As we explored in Money Market: Generation Z, the findings illustrate this generation’s pragmatic approach to finance and its desire to make money work for them.