Young Workers Seek Retirement Advice Earlier Despite Financial Headwinds

Despite delays to milestones such as homeownership, marriage and parenthood because of financial pressures—or in part because of them—many Generation Z and Millennial adults are preparing for retirement earlier than previous generations, according to Northwestern Mutual’s 2026 Planning & Progress Study.

The study found Gen Z respondents began saving for retirement at age 22 on average, while Millennials started at age 28. Both generations reported starting retirement saving earlier than their parents and grandparents.

“Working with younger clients, one of the most consistent differentiators between those who feel discouraged about retirement and those who feel cautiously optimistic isn’t income level,” said Michael Chartos, a managing director at Northwestern Mutual, in an email to PLANADVISER. “More often, it is the presence or absence of a concrete, written financial plan.”

However, even with saving earlier than previous generations, 24% of surveyed Gen Z savers still feared they would never be able to afford to retire.

“Many younger clients aren’t necessarily asking, ‘How do I build wealth?’” Chartos wrote. “They’re asking, ‘Can I still afford the life I imagined?’”

The results follow findings from a separate section of Northwestern Mutual’s Planning & Progress Study, released earlier this year, which found that many Americans continue to struggle with financial independence. In that survey, 53% of Millennials and 33% of Gen X respondents said they still relied on their parents financially, while 20% of respondents across all generations said they did not expect to ever achieve financial independence.

The recently released section found that 72% of Gen Z respondents and 56% of Millennial respondents had postponed at least one major life milestone because of financial constraints. Additionally, 71% of Gen Z respondents and 60% of Millennial respondents said they worried they may never be able to afford at least one major life milestone.

“Every year a younger American defers homeownership is a year they are not building equity that could eventually serve as a meaningful component of their net worth in retirement,” wrote Chartos. “More than seven in 10 Gen Z and Millennial parents say they spend as much or more on their children each month as they do on rent or their mortgage. When parenting expenses rival housing costs, the discretionary dollars available for retirement contributions can shrink dramatically.”

Among respondents who had not yet retired, Gen Z participants said they expected to retire at an average age of 61, compared with 64 for Millennials and 67 for Gen X respondents.

The study also found younger Americans are seeking professional financial advice earlier than previous generations. About one-quarter of Gen Z respondents (24%) and Millennials (25%) said they sought guidance from a financial adviser for the first time within the past year.

“I think today’s younger generations are facing a level of financial complexity that previous generations simply didn’t encounter at the same stage of life,” said Chartos. “They’re trying to navigate high housing costs, student debt, inflation, shifting job markets and even concerns about how artificial intelligence could impact their careers and earning potential.”

Among those surveyed who worked with an adviser, Gen Z respondents reported first doing so at the average age of 22, compared with 30 for Millennials, 40 for Gen X and 47 for Baby Boomers.

The study was based on an online survey of 4,375 U.S. adults conducted by The Harris Poll from January 5 through 21.