A new survey reveals a surprising generational divide in retirement planning. Younger workers (Gen Z and millennials) are starting to save earlier, engaging more actively with their workplace retirement plans, and planning for market volatility, while many Gen X and boomers report they wish they’d taken similar steps earlier in their careers.
“Our research highlights how different generations approach retirement — and what we can learn from them,” said Cathy Marasco, head of Protected Retirement at financial and insurance services firm Nationwide, which surveyed approximately 2,200 plan participants last summer. “Younger savers are showing that early engagement and proactive planning can create confidence and resilience, while older generations offer valuable perspective on the risks of waiting to take action. As we think about resolving to create better financial habits in the year ahead, these insights give all of us a clearer roadmap for building a stronger financial future.”
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) — according to the survey. They’re also more engaged and protection-focused by checking balances weekly, increasing contributions annually, and planning ahead for market volatility. Roughly 7 in 10 younger savers say they have a strategy to safeguard their savings before retirement, compared to just 55% of Gen X and 44% of boomers.
Millennials, in particular, are leaning more on resources like their company’s HR team, retirement plan providers, and financial advisors to guide their decisions. As a result, 8 in 10 younger savers feel optimistic about their retirement plans. Nearly half also feel confident about the savings they’ve accumulated, compared with just a third of Gen X and a quarter of boomers.
Older savers share regrets
More than 80% of Gen X and boomers regret not starting to save or participate in their employer-sponsored retirement plan earlier — and even more wish they’d focused sooner on strategies to protect their savings from market volatility or convert assets into sustainable income in retirement.
Such regrets are compounded by persistent knowledge gaps. More than three-quarters of older savers wish they understood the power of compounding interest and the benefits of maximizing contributions at a younger age, while 54% of Gen X and 39% of boomers admit they still misunderstand how compounding interest works. Additionally, more than half believe their 401(k) will provide predictable monthly income like a paycheck, setting unrealistic retirement expectations.
These missed opportunities have real consequences, as 1 in 5 older savers feel they’re on the wrong track for retirement, and almost one in three now expect to retire later than planned, according to the survey.
Smarter saving tips
Nationwide recommends simple suggestions employers can share with their employees to help improve their retirement outlook. The include the following:
1. Start saving now, or increase what you’re already saving. Even a 1% bump can make a meaningful difference over time.
2. Contribute enough to earn your full employer match. Roughly 20% of savers across all generations say they either don’t contribute enough to receive the full match or aren’t sure if they do — leaving money on the table.
3. Check in with your retirement plan provider or financial advisor. A quick review at the start of the year can help you understand if your current allocation and risk level still align with your goals, and whether rebalancing may be appropriate.
4. Prepare for market changes and long-term income. Take time to understand how your current savings will eventually convert into income in retirement and explore plan options that provide protection or guaranteed income.
“A new year is a natural point to reset financial habits,” Marasco said. “Workplace retirement plans are evolving to include many of the tools and protections needed to build long-term security — like income solutions, portfolio guidance and downside protection — making it easier for savers to take the next step.”
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