Retirement planning looks different for everyone — and it’s increasingly shaped by generational experiences and economic conditions. From rising health care costs to market fluctuations and inflation, preparing for retirement today often feels like aiming at a moving target.
Fidelity’s recent multi-generational study reveals how four generations — Baby Boomers, Gen X, Millennials, and Gen Z — view their financial futures.
While 67% of Americans say they feel confident about retirement, that number has dropped from the previous year, highlighting growing uncertainty.
Boomers: Facing Retirement Head-On
Most Baby Boomers are already retired or nearing retirement. While over 70% say retirement is going as expected, many have faced unexpected challenges like market downturns and medical expenses. Their main sources of income include Social Security, pensions, and personal savings. However, with fewer traditional pensions available today, some Boomers are delaying Social Security or working part-time to close the gap.
Gen X: Caught in the Middle
Often called the “sandwich generation,” Gen X is juggling college costs for children, care for aging parents, and their own retirement savings—all while managing debt and high living expenses. Only 53% feel confident about retiring when they want. Increasing contributions to retirement accounts and exploring additional income sources could help them build financial resilience.
Millennials: Hopeful but Burdened
Despite student loans, housing costs, and career disruptions, Millennials report 71% confidence in their retirement plans. This group values flexibility and personal goals, with many seeking alternative investment strategies like cryptocurrency. However, limited access to employer-sponsored retirement plans means they must find creative ways to build wealth for the future.
Gen Z: Optimistic Yet Realistic
Just starting their careers, Gen Z is entering adulthood with caution. Having witnessed economic uncertainty, they’re more financially aware and eager to take control of their futures. With 75% expressing retirement confidence, this group’s early focus on saving and financial literacy could pay off in the long run.
Advice from Retirees
Current retirees offer timeless advice: Pay off high-interest debt, start saving early — even in small amounts — and take full advantage of employer-sponsored plans. Learning how Social Security and Medicare work and consulting a financial advisor can also help.
Plan Ahead with Support
No matter your age, preparing for retirement requires flexibility, proactive planning, and trusted guidance. Work with a financial planner and estate planning attorney to build a retirement strategy that supports your long-term goals and peace of mind. Give our office a call today, 605-275-5665.
Read more: Generation Gaps Among Americans in Retirement Planning