Northwestern Mutual: Young Americans Start Saving Sooner, Want To Retire Earlier Than Boomers

Gabrielle Olya

Sat, Apr 26, 2025, 2:00 PM 4 min read

Young Americans are getting a head start on retirement prep compared to older generations, a new study finds. According to the latest Northwestern Mutual Planning & Progress Study, Gen Z started saving for retirement at an average age of 24, while millennials started saving at an average age of 29. The average boomer didn’t start saving for retirement until nearly a decade later, with the average age at 37.

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With a head start on saving, younger generations are hoping to get a head start on retirement, too. While the average boomer plans to retire at age 72, Gen Z hopes to retire at age 61 and millennials hope to retire at age 64.

Here’s a closer look at why younger generations are starting to save sooner, and whether this will enable them to retire earlier than the traditional retirement age of 65.

Gen Z and millennials are often derided for being financially irresponsible, but the data seems to imply otherwise. These generations are starting to build their retirement savings in their 20s, decades in advance of their planned retirement. One reason they’re starting to save earlier than older generations could be more widespread access to financial information.

“We’re living in a time where information is more accessible than ever, so Gen Z has grown up with financial conversations happening in real time — from TikTok money tips, to seeing their own families financially struggle through things like the 2008 recession or even the 2020 pandemic,” said Michelle Bruno-Burton, a financial representative with Northwestern Mutual based in Atlanta. “They’re learning by watching and absorbing, and in turn, have become more vigilant when it comes to their finances.”

Younger Americans also have access to more tools that make saving for the future easier.

“Gen Z is using online tools, like automatic savings apps, to build habits that last,” Bruno-Burton said.

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With an average starting age of 24 and an ideal retirement age of 61, that gives Gen Z 37 years to build retirement savings. But is 61 a realistic goal age? Bruno-Barton believes that it is possible to achieve with the proper planning.

“If a goal is clearly defined, your financial plan should reflect those goals,” she said. “With tax-efficient strategies, it’s absolutely possible! Starting earlier gives your money more time to grow, which is a huge advantage. But retiring at age 61 isn’t just a number — it’s a vision. And bringing that vision to life might mean making some intentional choices along the way, like being mindful about lifestyle spending or being strategic about investing.”