Gen Z Leads Retirement Optimism as Boomers Lag Far Behind

The youngest members of the workforce are the most confident about retirement, and their saving habits seem to back it up. A new financial wellness report from Payroll Integrations finds that Gen Z workers are far more likely than older generations to expect an early exit from work, even though they are furthest from it.

Data from the Investment Company Institute (ICI) points the same way. The share of Gen Z households with retirement accounts is three times that of Gen X households at the same age. The Payroll Integrations report, which surveyed employees and employers across generations, found a clear divide on the topic.

Early Retirement Hopes Split by Generation

Sixty-two percent of Gen Z workers expect to retire before age 65. Among millennials the figure falls to 36%, and Gen X sits at 31%. Only 3% of Boomers believe they will manage the same.

Gen Z also leads on confidence in a comfortable retirement. Nearly half (48%) of Gen Z workers expect one, compared with 38% of millennials, 31% of Gen X and 22% of Boomers.

Early Saving Fuels the Optimism

The report suggests that preparedness may be feeding this outlook. Ninety percent of Gen Z workers already contribute to a retirement plan, compared with 81% of millennials, 83% of Gen X and 75% of Boomers.

Scott Ford, president of wealth management at U.S. Bank, has stressed the value of proactive financial planning. In the bank’s recent report on young Americans’ investing patterns, he noted that no single playbook exists for building wealth. A plan, he said, helps people weigh their choices against their goals and decide what suits their situation.

The findings suggest that starting early may shape confidence as much as account balances, a gap older generations may find hard to close.