(AURN News) — Headlines about Gen Z and millennials often focus on financial setbacks, but a new study from Vanguard offers a more hopeful perspective. The Vanguard Retirement Outlook finds that younger workers are actually on stronger footing for retirement than previous generations.
According to the study, 47% of Gen Z workers ages 24 to 28 are on track for retirement. Among millennials ages 29 to 44, 42% are on track.
By comparison, only 41% of Gen X workers ages 45 to 60 are on track. Baby boomers ages 61 to 65 come in slightly lower at 40%.
The findings matter, especially as younger generations continue to face rising living costs, stagnant wages, and significant debt burdens. Vanguard notes that access to defined-contribution retirement plans has expanded in recent years, and employer plan features have improved — giving younger workers a stronger start.
“While many young workers face significant debt burdens — student loans, auto loans and credit card debt consume about a quarter of Gen Z and millennials’ income at the median — expanded DC plan access and improved plan features are helping them build retirement security,” the report said.
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