Despite living in a time of economic turbulence, Gen Z and Millennials feel positive about retirement, according to a new survey by SoFi. Gen Z is particularly bullish on retirement. Fifty-seven percent say it’s achievable with a plan in place, compared to just 45% of Millennials who feel the same.
To find out how Gen Z (ages 18 to 29) and Millennials (ages 30 to 45) are thinking about retirement in the current economic landscape, SoFi surveyed 761 adults who are actively planning for retirement. They discovered that while the concept of retiring is as popular as ever, the definition of what it means to be retirement ready is undergoing a seismic shift as these two generations balance trying to save for the future with the high cost of housing; rising health care expenses; growing debt; and economic, political, and societal uncertainty.
Retiring is no longer about leaving the workforce at one certain age, Gen Z and Millennial survey respondents say, but about being flexible, financially resilient, and open to opportunities.
Read on to learn about the new reality of retirement for Millennials and Gen Z — and the creative paths they’re forging to get there.
Key Survey Findings
- 59% of SoFi survey respondents ages 18 to 45 are actively contributing to a retirement or long-term savings plan.
- 31% are balancing debt or immediate expenses while trying to save whatever they can.
- 77% are very or somewhat confident they can retire comfortably and maintain their desired lifestyle.
- 53% cite inflation as one of their biggest retirement concerns; 48% are most concerned about running out of money.
- Among those saving or trying to save, 64% have reduced or paused retirement contributions at least occasionally due to financial stress over the last 12 months.
- 32% say economic or market uncertainty is their biggest psychological barrier to saving more.
- 63% say everyday costs or housing payments are the biggest factor affecting their ability to save for the future.
The Retirement Divide: Attainable (Gen Z) vs. Uncertain (Millennials)
While Millennials and Gen Z are commonly referred to as today’s younger generations, they are distinguished not only by their birth years — 1981-1996 and 1997-2012, respectively — but by their formative experiences. Millennials experienced the 2008 Great Recession firsthand, while Gen Z witnessed the disruption of the COVID-19 pandemic. Moreover, retirement is looming larger for the older Millennials.
It’s no surprise that the two groups have different viewpoints on retirement. It’s notable, however, that both groups feel hopeful about retirement.
Nearly 3 out of 5 Gen Zers and nearly half of Millennials feel retirement is still achievable as long as they have a plan to make it happen.
SoFi
51% say retirement is achievable with planning
More than half of SoFi survey participants say retirement is attainable if they take steps to achieve it. For many respondents, preparing for retirement includes putting money in a retirement account, such as contributing to a traditional or Roth individual retirement account (IRA), and/or participating in a 401(k) plan at work.
Gen Z is more likely than Millennials to say retirement is achievable
Gen Z has a far rosier view of retirement than Millennials do. Fifty-seven percent of Gen Z respondents say retirement is achievable with a plan in place, while just 45% of Millennials say the same. And Millennials are twice as likely as Gen Z to describe retirement as uncertain but possible.
Still, 43% feel optimistic overall about retirement
Both Millennial and Gen Z survey respondents equally choose “optimistic” over every other answer when it comes to their feelings about retirement.
SoFi
32% expect to retire by age 55
Millennials and Gen Z even have an age in mind for when they’ll give up the 9-to-5 grind: 32% of all survey participants expect to retire between the ages of 55 and 64, while 31% say they’ll retire in the age 65-to-70 time frame. Almost one-quarter (24%) envision themselves retiring before age 55. Just 4% say they don’t think they can ever retire.
Thirty-three percent of respondents expect their retirement to last for 25 years or more.
SoFi
Yet Despite Their Goals, 49% Have Less Than $25,000 Saved for Retirement
Even as they plan to build their retirement savings, however, many SoFi survey respondents still have a long way to go.
SoFi
21% have less than $5,000 saved for retirement
Of those respondents saving or trying to save for retirement, approximately 1 in 5 say they have less than $5,000 in savings, while 28% report that they have $5,000 to $24,999 socked away.
79% have $99,999 or less
Most survey participants have less than $100,000 in their retirement accounts. Nearly half of respondents have an account balance that’s less than $25,000, while 30% have $25,000 to $99,999 saved up.
21% have $100,000 or more
Only about 1 in 5 savers in the survey has hit the six-figure mark: 14% have $100,000 to $249,999 in retirement savings, while 7% have $250,000 or more.
Meanwhile, Some Respondents Are Maxing Out Accounts
Most respondents who have employer-sponsored plans like 401(k)s and 403(b)s, and those with IRAs are making the most of their retirement plans by contributing the maximum amounts allowed.
75% of employer-sponsored plan users are contributing the maximum amount
Three-quarters of respondents with employer-sponsored plans know how much they can contribute annually to their workplace plans, and they make sure to do it.
64% of IRA users are maxing out contributions
Almost two-thirds of those with IRAs are contributing the maximum amount allowed to save more for retirement.
However, 36% aren't maxing out their IRA contributions or say they're not sure. Individuals can calculate how much they can contribute to an IRA annually so they can see if contributing up to the limit is within their budget.
Social Security Is Part of the Plan, But Not the Whole Plan
Regardless of predictions that Social Security may be depleted by 2033, according to a report from the Social Security and Medicare Boards of Trustees, SoFi survey respondents are pretty optimistic about the program's future. But they are also pragmatic. Most respondents expect Social Security to be just one small piece of their retirement income, while workplace retirement plans, IRAs, and other investment accounts fund the bulk of it.
59% are fairly sure Social Security will provide them with retirement income
Thirty-three percent are very confident that Social Security will provide them with meaningful retirement income when they retire, and 26% are somewhat confident. However, 22% are not very confident or have no confidence at all that Social Security will be there for them when they need it.
23% expect Social Security to fund the majority of their retirement
Almost one-quarter of respondents think Social Security will be their main funding source. But they’re in the minority: 62% percent of Gen Z and Millennials believe that most of their retirement funding will come from employer-sponsored plans like 401(k)s or from personal investment accounts like IRAs or brokerage accounts. Nine percent say continuing to work in some capacity is what will cover their retirement.
SoFi
Their Retirement Planning Is Not Without Some Trade-offs
While younger generations are getting a jump start on building their nest egg, they do have some obstacles to overcome, particularly Millennials.
SoFi
59% are contributing to a retirement or long-term savings plan
The majority of these respondents (almost 60%) are putting money away for retirement. But there is a big generational difference, with Gen Z much more likely to be contributing to a retirement savings plan.
Millennials are more likely than Gen Z to be balancing debt and immediate expenses
The Millennial generation is trying to meet the challenge of paying their immediate expenses and debt, while saving for retirement at the same time. This group is in their prime child-raising years, and they likely have more financial obligations. Gen Z, which is under age 30, may have fewer — or smaller — expenses and debts.
The difference between the two generations is significant.
77% are confident they can retire comfortably
More than three-quarters of respondents feel they can retire and maintain their desired lifestyle. Millennials and Gen Z feel almost equally confident about this at 78% and 80%, respectively.
Survey responses suggest: Gen Z is more positive about retirement and they're actively planning for it. Millennials are uncertain what the future holds, but they believe a comfortable retirement is possible, and they're trying to save for it as best they can. Still, saving is a struggle for both generations — almost half of all savers have less than $25,000 in their retirement accounts.
Uncertainty Is the Biggest Psychological Barrier to Saving for Retirement
Gen Z and Millennials are living in unstable times economically, geopolitically, and socially, and that volatility can influence how they handle their finances. Among the survey respondents already saving for retirement, uncertainty about the future is preventing them from directing more money to their retirement savings.
SoFi
32% of savers worry that the economy or market will change significantly before they retire
From a psychological standpoint, economic and market anxiety is by far the number-one savings roadblock for Millennials and Gen Z. In a distant second place is the sense that they’re falling short in retirement savings when compared to others tied with feeling overwhelmed by the number of different investment options available.
Millennials are slightly more likely than Gen Z to worry about uncertainty
Thirty-four percent of Millennials say economic or market unpredictability is their biggest psychological barrier to saving more for retirement, compared to 32% of Gen Z.
For Gen Z, how to invest and what to invest in is a greater obstacle: 21% of respondents in this age group say they feel overwhelmed by the number of investment options available versus 15% of Millennials.
Inflation Is Rewriting the Retirement Script
According to the most recent report by the U.S. Bureau of Labor Statistics, inflation was 4.2% in May 2026, up from 3.8% in April — the highest it's been since 2023. It dropped to 3.5% in June.
As inflation rises and prices surge, saving for retirement becomes more challenging for both Gen Z and Millennial survey respondents.
64% say inflation is causing them to save less
Respondents who are saving for retirement (or trying to) report that inflation is limiting their ability to contribute to their retirement plans. Thirty-nine percent are saving somewhat less because of inflation, while 25% say they are saving significantly less.
Inflation is the top retirement concern
It isn't just the current inflation rate that worries SoFi survey respondents — inflation during retirement is the biggest source of apprehension for Millennials and Gen Z alike.
SoFi
63% say everyday costs or housing payments are the biggest barrier to saving
As a result of inflation, the high cost of living expenses, including groceries and utilities, as well as rent or mortgage payments, are taking a big bite out of savings budgets.
SoFi
10% aren’t yet saving
One in 10 of all survey respondents describe themselves as not yet saving for retirement or opening an IRA. The main obstacle: affordability. This group feels they don’t have enough extra money to make saving worth it.
Some Savers Forced to Pause or Reduce Contributions
Financial stress has taken a toll on many SoFi survey respondents — literally. Almost two-thirds of those saving or trying to save have had to temporarily stop contributing to their retirement plan, or lower their contribution amount, at least once in the last 12 months.
64% have reduced or paused contributions at least occasionally
Of those who had to pull back on retirement plan contributions, 36% did so once or twice, and 28% paused or reduced their amounts three or more times over the past year.
Housing Both Hurts and Helps Retirement Saving
Owning a home is part of the American dream, but these days, it comes with a steep price tag. The average price of a home in the U.S. at the end of 2025 was $486,000, according to the Urban Institute's Affordability Tracker. The average rent is $1,890 per month.
It’s no wonder then that more than one-third of SoFi survey respondents worry that the cost of housing will put a squeeze on their savings in retirement. Yet at the same time, half of respondents also believe their home will be a significant factor in funding their retirement.
34% cite housing affordability as a top retirement concern
The cost of housing ranks as the fourth biggest retirement worry for survey respondents after inflation, running out of money, and health care costs.
50% say owning a home will play a major role in funding retirement
Despite what it may cost them in mortgage payments, half of all survey respondents expect their home to be instrumental in helping them build their retirement fund. Gen Z is especially likely to call their home a retirement asset: 57% of them believe owning a house will play a major role in funding their retirement, compared to 46% of Millennials who say the same.
Survey responses suggest: Affordability, housing costs, and rising prices are a major worry for Gen Z and Millennials now and in the future. As they see how inflation currently curtails their ability to save for retirement, they fear it may also reduce their purchasing power in retirement and effectively make their savings worth less.
Gen Z Prioritizes Wealth Acceleration, While Millennials are Security Focused
Many younger adults see the path to retirement as branching out in different directions, rather than one straight road. For them, the years leading up to it, and retirement itself, are a chance to embrace new opportunities.
SoFi
37% say their top retirement goal is passive income
Across the board, the respondents to SoFi's survey say their primary retirement goal is to have enough passive income coming in to ensure that they never have to work again.
Gen Z feels particularly passionate about passive income: 40% say it’s their number-one retirement goal versus 35% of Millennials who feel that way.
Gen Z is slightly more likely than Millennials to choose building net worth as fast as possible as their top retirement goal. Millennials prefer to reach a basic level of security for retirement.
In Spite of the Challenges, Market Volatility Has Not Pushed Most Savers Off Course
Although they are clearly concerned about what the future might hold, the ups and downs of the stock market have not caused respondents to change their original long-term investment strategy.
38% have remained true to their original investment plan
Most believe that consistency is key and have stayed to the investment roadmap they first mapped out. Twenty-two percent reported increasing their contributions to take advantage of lower prices.
Only 9% have temporarily pulled back due specifically to market volatility
A small group of respondents say they have momentarily paused or reduced their contributions because of ups and downs in the market, while 20% have moved some of their assets into more conservative or stable options.
Side Hustles Are Helping Some Save Extra for Retirement
Taking on extra work allows some Millennials and Gen Zers to save more money for retirement, but overall, most survey respondents are trying to build their nest egg with earnings from their primary job.
32% of savers have a job on the side
Among respondents who are saving or trying to save for retirement, almost one-third say they use income from a side hustle or freelance work to boost their retirement savings.
Another 10% use cash-back rewards or microinvesting apps to increase their savings for retirement, and 5% use passive income they make from rental properties or dividends.
53% rely solely on their primary salary
Still, more than half of savers use only their main source of income to increase their retirement savings. Some savers consider automating their finances as part of their approach.
The Takeaway
Overall, Gen Z and Millennials are hopeful about retirement and believe they can achieve it with a plan in place. Many of them have started to save, and while the amounts in their retirement accounts may be modest, they are on the path to building wealth for the future.
At the same time, both generations are facing a multitude of financial challenges, including inflation, economic uncertainty, high housing costs, health care expenses, and debt. Many have had to temporarily pause or stop spending at least once because of financial pressures.
But still, they are flexible and resilient, and ready to pivot when need be. The majority of respondents are contributing to a retirement plan, and some have taken side gigs to boost their retirement contributions. While many are counting on passive income streams to help power them through retirement, others plan on working into their golden years. Millennials and Gen Z are recreating what it means to be retired and how to achieve their financial goals.
About the Survey
Findings are based on an online survey of 761 U.S. adults aged 18 to 45 who are actively involved in retirement planning/saving. The survey was conducted in March 2026. Percentages may not total 100 due to rounding, and select questions allowed multiple responses.
This story was produced by SoFi and reviewed and distributed by Stacker.