Nationwide survey: Gen Z disillusioned with retirement

When will you retire? For nearly 1 in 5 Gen Zers, the answer is: maybe never.

In a Nationwide survey of 349 Generation Z investors with $10,000-plus in investable assets, 17% of respondents said they’re spending more on leisure despite long-term financial concerns, believing they may never be able to retire.

Financial advisors say that many younger investors have become disillusioned with the prospect of retirement.

“For generations, many people under 30 haven’t prioritized retirement, not because they don’t care, but because they’re still building their lives and careers,” said Melissa Caro, founder of My Retirement Network, a digital media platform to promote financial literacy. “For Gen Z, it’s even harder. They’re bombarded with financial advice online, but many are struggling to afford basics like rent and groceries. When you’re in survival mode, saving for retirement feels not just distant but impossible.”

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Among survey respondents, 4 in 10 investors said that they worry about their ability to afford monthly bills over the next year. 

Advisors say that even among young investors who have the means to start saving for retirement, many are more concerned with short-term financial goals. In the survey, almost half (46%) of investors said that paying off loans and debts, such as credit cards, mortgages and car payments, is their top financial priority for the next 12 months.

A changing picture of retirement

A short-term outlook can go hand-in-hand with retirement savings, as long as advisors know how to approach clients about their money practices.

“Engaging Gen Z also requires meeting them where they are, which often means emphasizing tangible, short-term goals that stack up upon each other toward their long-term success,” said Craig Toberman, a partner at Toberman Becker Wealth in St. Louis. “When conversations feel directly relevant to their lives today, they are more likely to take action.”

“For example, I often encourage younger clients to start with manageable steps, like directing a portion of irregular income, such as bonus pay or freelance earnings, into the longer-term ‘investment bucket.’ Focusing on what’s possible today builds momentum, even if retirement feels far off,” Toberman added.

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For many Gen Z investors, advisors say the prospect of a far-off retirement finish line has lost the luster it once held with previous generations. Instead, advisors say that discussions about financial freedom resonate more deeply with younger investors.

“They don’t want lectures. They want to understand how financial decisions impact their real lives, not just some far-off retirement fantasy,” Caro said. “So, instead of starting with retirement, start with what they care about today — freedom, flexibility and experiences — and show how smart financial choices can make more of that possible over time. It’s about building trust early and evolving with them as their income and goals grow.”

Connecting with a new generation of investors

Financial advisors know connecting with Gen Z clients is crucial. But some planners find that easier than others.

Mike Casey, the founder of American Executive Advisors in Alexandria, Virginia, said that “many Gen Zers seem to be disillusioned with finances and career prospects, but they can’t quite articulate the cause.”

Engaging with younger clients can be difficult if an advisor is struggling to understand what’s behind that disillusionment.

John Power, a financial advisor at Power Plans in Walpole, Massachusetts, said that many of the young clients he has worked with recently are simply uninterested in retirement planning.

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“Of late, I have encountered several younger clients who simply don’t ‘get it.’ I have tried everything I can think of to get them energized, but to no avail,” Power said. “My suspicion is that the instant gratification of current technologies has made it difficult for them to concentrate on anything very long, and financial planning does take some work on the client’s part. They seem to be more engaged in having fun than taking their financial lives seriously. Some even have good incomes and have kids, but haven’t a clue and can’t bring themselves to start.”

Understanding that attitude isn’t simple.

Landon Tan, the founder of Query Capital in Brooklyn, New York, said that economic challenges, shifting generational opportunities and policy issues affecting young people’s futures discourage many young investors from focusing on retirement planning.

Advisors say those concerns are real, but they’re also not insurmountable.

“People really underestimate just how within reach retirement is for young people who have decades of growth ahead of them,” Tan said. “By drilling into the numbers, it’s easy to show individuals the truth. I hope that more financial advisors will cater to young people and use fee models that expand access so that more people have the opportunity to be persuaded to believe in their futures.”