Younger Americans Rewriting Rules of Retirement

A majority (55%) of Americans believe that receiving professional financial advice between the ages of 25 and 39 is highly important or even critical for achieving long-term financial stability. The encouraging news is that members of Generation Z and Millennials are not only recognizing this need, but responding to it, according to the Northwestern Mutual 2025 Planning & Progress Study, which surveyed 4,626 U.S. adults aged at least 18 from January 2 through January 19.

Of those surveyed, 81% of Gen Z and 82% of Millennials admitted their financial planning could use improvement and said they are taking steps to move forward. More than one-quarter of each group (28% of Gen Z and 26% of Millennials) have met with a financial adviser for the first time in the past year.

Trusted Source of Financial Guidance

For trusted financial guidance, Americans rank advisers far above family or spouses. One-third (33%) of respondents said they trust financial advisers the most—nearly double the number who said they rely on family members, and three times as many as those who turn to a spouse or partner.

The respondents’ top motivation, according to the survey, is to build a comprehensive financial plan that supports both wealth creation and protection. For a growing number of Millennials, financial advice also serves a more personal purpose, the survey found: 32% of respondents said they seek guidance to better align their money with their values and the causes that matter most to them.

“Young adults today value advice and are actively taking steps to get it,” said Kamilah Williams-Kemp, Northwestern Mutual’s chief product officer, in a statement. “It’s interesting and notable too that they’re looking not just to grow and protect their wealth but to tailor their plans to reflect their personal goals and values. This level of intentional planning is impressive and can make a huge difference over the course of a lifetime.”

Adults in Generation Z who work with a financial adviser began at an average age of 23—more than two decades earlier than Baby Boomers. In some cases, members of Gen Z began working with an adviser before they began formally saving for retirement—another sign of proactive financial behavior. Millennial respondents started at an average age of 30, 10 years earlier than the average age for Gen X and close to 20 years earlier than Baby Boomers.

Retirement Milestones Shifting Across Generations

Overall, working-age respondents said they started saving for retirement at age 31 and plan to retire at age 65. But across every generation, respondents reported they are saving sooner, planning to retire earlier and expecting to live longer, anticipating living from 35 through 37 years in retirement.

For instance, respondents from Gen Z started saving at 24, aim to retire at 61, and more than one-third (34%) think it is likely they will live to 100. Baby Boomer respondents, meanwhile, started saving at 37, aim to retire at 72, and less than one-quarter (23%) said it is likely they will live to 100.

Despite being early in their careers, members of Gen Z express the most confidence in their retirement readiness—perhaps reflecting the advantage of starting early. Conversely, Gen X is the only generation from which most respondents said they do not think they will be ready to retire.