In an era of rising living costs, economic uncertainty, and an increasingly unpredictable job market, Generation Z—born between 1996 and 2012—is surprising experts with a financial behavior rarely associated with youth: aggressively saving for retirement.
One practical example of this new attitude is Brynnley Beckman, who at just 23 years old is already planning for retirement. A biology teacher in a public school in Dallas, she allocates 3% of her salary to a school-sponsored retirement plan, and plans to increase her contribution by 1% each year. Her goal is clear: consistently raise her contribution and secure the freedom to choose when to stop working. “I started saving early because I know that the longer the money stays, the more it grows,” she said.
And Brynnley is not alone. According to a 2024 report from TIAA, which provides retirement services for employees in education, healthcare, and non‑profit sectors, 20% of Generation Z is already saving for retirement, contributing at higher rates than millennials did when they entered the workforce. A 2023 Vanguard study confirms that the new generation is entering the job market with heightened awareness and action.
Public Policy and Technology: The Engines of Change
This early progress isn’t just a matter of personal will. Public policy has played a central role. The Secure Act 2.0, effective since late 2022, automatically enrolls eligible employees in 401(k) and 403(b) plans with preset contributions and annual escalation. The result? Lower entry barriers and measurable results.
The Secure Act 2.0 also mandates that plans offer contribution escalation—an automatic yearly increase of at least 1% until at least 10% of the employee’s salary is being saved. For workers like Ms. Beckman, who are at least 30 years away from retirement, these features can reduce the chance of running out of money in retirement by 60%, according to a recent Employee Benefit Research Institute study.
Technology has also played its part. Apps like Acorns, Robinhood, and numerous personal finance podcasts have transformed how young people consume financial education. Between 2020 and 2024, 64% of new Acorns users were aged 18–35. On Robinhood, 75% of customers are Generation Z or millennials.
When the Numbers Speak
Data shows that Generation Z’s retirement mindset extends beyond intention — it is visible in real figures. In 2022, 39% of 23‑year‑olds held stocks, a significant increase from 31% in 2007, according to the Federal Reserve Bank of St. Louis. Not only are more young people participating in the market, but they’re investing larger amounts: the median stock balance for Gen Z is $4,400, compared to $3,900 for Gen Y.
This trend is even more pronounced among individuals like Christopher Lind, who at 25 saves approximately 21% of his annual salary — far above the national average of 14.1%, according to data from Fidelity. Mr. Lind divides his savings between a Roth IRA and a 401(k), adopting a strategy that combines discipline, long-term vision, and active use of digital tools.
Below is a comparison that illustrates how the scenario has evolved over the past 15 years:
| Indicator | Generation Z (2022) | Generation Y (2007) |
| 23‑year‑olds owning stocks | 39% | 31% |
| Median stock balance | $4,400 | $3,900 |
| Average retirement savings rate | 21% (sample case) | 14.1% (national avg.) |
These figures underscore a generational shift in mindset: saving has evolved from an abstract concept to a concrete, daily routine for many young people. More than an early start, this is a generation demonstrating remarkable financial maturity — especially at a time when the future feels increasingly uncertain.
The Rise of Women in Financial Leadership
One noteworthy detail stands out: 54% of Generation Z women are contributing to 401(k) plans, compared to 44% of their male counterparts. This progress is significant, and over time could help reduce the longstanding gender retirement gap, which currently stands at around 30%.
However, experts caution that challenges remain. Career interruptions for caregiving, lower wages, and part-time employment continue to negatively impact women’s retirement savings capacity.
Off‑the‑Chart Investing
Meanwhile, Generation Z men have been exploring higher-risk alternatives outside traditional plans. Many began investing in cryptocurrencies and stocks via apps like Robinhood during their teenage years. The pandemic reinforced this behavior, evidenced by the “meme stock” phenomena like GameStop among young investors.
A 2024 Pew Research Center study found that 42% of men aged 18–29 invested in cryptocurrency, compared to only 17% of women in the same age group.
The trade-off? Greater exposure to volatility and potential for substantial losses. The upside? High reward potential if markets favor these investments in the future.
What Lies Ahead?
If markets continue growing steadily, traditional retirement plans may prove most effective. In a scenario of massive expansion or tech-led bubbles, bold investors could reap greater benefits.
The truth, however, is that Generation Z is doing something no other generation has done so consistently: blending technology, financial education, and long-term planning.
And, as Brynnley Beckman sums up with clarity many take years to achieve: “The best thing we can do for ourselves is start saving early.”
