Elijah Nicholson-Messmer
4 min read
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."
READ MORE: Saver's match 'free money' could pad millennial, Gen Z retirements
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 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.
READ MORE: The 10 cities where retirees receive the highest income
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.
