Study asks: How do different generations approach retirement?

A recent survey from the Nationwide Retirement Institute (NRI) reveals a surprising generational divide in retirement planning. Younger workers – Gen Zers and millennials – are starting to save earlier, engaging more actively with their workplace retirement plans, and planning for market volatility, while many Gen Xers and boomers report wishing they had taken similar steps sooner.

How young retirement savers behave

On average, Gen Z and millennial savers started contributing to their workplace retirement plans at age 23 and 28, respectively – nearly a decade earlier than Gen X (34) and boomers (40), the survey said. They’re also more engaged and protection-focused: checking balances weekly, increasing contributions annually, and planning for market volatility. Roughly 7 in 10 younger savers said that they have a strategy to safeguard their savings before retirement, compared to just 55% of Gen Xers and 44% of boomers.

Millennials, in particular, are leaning more on resources like their company’s human resources team, retirement plan providers, and financial advisors to guide their decisions. And both Gen Zers and millennials show greater familiarity with investment solutions that provide downside protection – and are more likely to say they’d use them.

Ultimately, these habits are paying off, the survey said. Eight in 10 younger savers feel optimistic about their retirement plans, and nearly half also feel confident about the savings they’ve accumulated. This is compared with just a third of Gen X and a quarter of boomers.

What older generations regret

On the other hand, older savers were candid about what they wish they’d done differently, the survey pointed out. For example, more than 80% of Gen Xers and boomers regret not starting to save or participating in their employer-sponsored retirement plan earlier. Over 8 in 10 also wish they’d focused earlier on strategies to protect their savings from market volatility or convert assets into sustainable income in retirement.

These regrets, the survey said, are compounded by persistent knowledge gaps. These include:

• Over three-quarters of older savers wish they understood the power of compounding interest and the benefits of maximizing contributions at a younger age.
• 54% of Gen Xers and 39% of boomers still misunderstand how compounding interest works.
• More than half believe their 401(k) plan will provide predictable monthly income like a paycheck, setting unrealistic retirement expectations.

These missed opportunities have real consequences, the survey pointed out.  One in five GenXers and boomers feel they’re on the wrong track for retirement and almost 1 in 3 now expect to retire later than planned.

Younger workers and smart retirement behaviors

As to why Gen Z and millennials are practicing smart retirement behaviors, Cathy Marasco, Nationwide’s head of Protected Retirement, explained that younger workers are benefiting from smarter, easier-to-use retirement plans.  “Automatic features like auto-enrollment and auto-escalation make it easier to start saving early and increase contributions over time without requiring constant decision making,” she said.

They’re also more engaged and more risk aware, Marasco added. Many GenZers and millennials have lived through recent economic shocks – from the housing crisis to the pandemic recession – which could have heightened their focus on protecting savings and preparing for market volatility. “At the same time,” she added, “they’re less likely to have access to a pension plan and they’re far less confident than older generations that Social Security will be available when they retire, which may be driving a greater sense of urgency to save now.”

Finally, younger savers may be learning from the regrets of older generations, Marasco said. “More than 80% of Gen X and boomers told us they wish they had started saving earlier. Seeing those real-world consequences with their parents and family members could be motivating some younger workers to act sooner, which is helping result in high confidence levels about their retirement outlook,” she said.

Improving retirement outcomes for younger workers

This research gives advisors a clear roadmap for improving retirement outcomes across generations, said Marasco. For younger savers, advisors can reinforce early participation, regular contribution increases and consistent planning. Many younger workers are actively seeking education and guidance, creating a strong opportunity for advisors to build new relationships and grow their practice.

“While contrary to typical rules of thumb, our research shows that younger savers are more risk-averse than in the past.  So, offering investments that protect savings and future retirement income may be more appealing to this cohort than previously thought,” Marasco said.

Helping older workers

For older workers, the focus is on closing gaps and building confidence, Marasco said. Advisors can help clients maximize catch-up contributions, reassess asset allocation through re-enrollments to ensure it aligns with retirement goals, and bring clarity to how certain investments can help, too.

One example is in-plan lifetime income investment options, which do more than just help translate savings to income, Marasco pointed out. “They also include a risk-management feature that can help stretch the savings near-retirees have accumulated – giving them a greater chance to narrow the savings gap and experience retirement success,” she said.

As retirement plans evolve beyond saving to focus on long-term stability, advisors who work with plan sponsors may see success with many demographics by recommending income-focused solutions, such as in-plan lifetime income options, Marasco said. “These tools help strengthen worker confidence by providing more predictable retirement income and added income protection against market volatility,” she added.

Edelman and Intelligence (DXI) conducted a national online 20-minute survey of 2,200 plan participants, on behalf of Nationwide, from July 30th – August 13th, 2025.

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