Data shows Generation Z and millennials started saving significantly earlier for retirement than Generation X and baby boomers

Voya Financial, Inc. (NYSE: VOYA) released new findings from a consumer research survey that revealed more than half of Americans say they started saving for retirement when they were between 18 to 34 years old — with an average age of 28. However, 64% of Americans wish they had started saving when they were under age 25.

“Deciding to save early and often in an employer-sponsored 401(k) or other retirement account is within the control of every employee who has access — and this can be an important factor in creating an effective plan that leads to financial security in the future,” said Kerry Sette, VP, Consumer Insights & Research at Voya Financial. “As many employees face competing financial priorities, it’s important to remember that saving in a tax-advantaged retirement account can allow earnings to compound over time, which could be increasingly powerful for employees with a longer investment time horizon.”

Twenty-three is the average age Americans say they wish they started saving for retirement — on average, that’s five years earlier than when they say they started saving for retirement. On average, Gen Z and millennials started saving for retirement much earlier than Gen X and baby boomers.

Gen Z had the earliest start on average, reporting they started saving for retirement around 20 years old. Millennials on average started at 24 but wished they had started saving at 23. Generation X and baby boomers started saving for retirement much later than younger generations, with Gen X starting at 30 compared to a desired age of 23. Baby boomers had the biggest gap in their average start age and their desired start age: beginning at 32 versus 24. Ultimately, every generation wished they had started saving for retirement sooner.

“This recent Voya data highlights how the design of a workplace retirement plan can help encourage employees of all ages to maximize the benefits of employer-sponsored retirement accounts — as soon as possible,” said Tom Armstrong, VP, Customer Analytics & Insight at Voya Financial. “For employers, plan design features such as automatic enrollment, automatic escalation and matching contributions can play a critical role in saving sooner.”

The continuing challenge for all generations to save for retirement

According to Voya’s own retirement plan participant data,¹ of those who changed their savings rate in the first quarter of 2024, the majority increased their savings rate, including 78% of Gen Z, 75% of millennials, 75% of Gen X and 78% of baby boomers. However, hurdles still exist when it comes to saving. Notably, Voya’s survey also found Gen Z (76%) and millennials (73%) say they “agree” or “strongly agree” they need help understanding how much to save for retirement.

Voya’s survey also notes the economy (64%) and inflation (61%) continue to be the top concerns regarding the impact on the ability to save for retirement. About half of Americans cited everyday living expenses (54%) and health care costs (49%) as having a “severe” or “major” impact on the ability to save for retirement.

“While employee wellness benefits continue to grow in popularity to support the holistic needs of today’s workforce, the reality is that many individuals don’t recognize the resources often available to them from their employers,” Armstrong added. “Health savings accounts to offset the burden of medical costs, student-loan debt support and tools for building emergency savings remain important focus areas for employers.”

As an industry leader focused on the delivery of benefits, savings and investment solutions to and through the workplace, Voya is committed to delivering on its mission to make a secure financial future possible for all — one person, one family, one institution at a time.

1. Internal Voya retirement plan participant data as of March 31, 2024.

About the study

These are the results of an Ipsos survey in collaboration with Voya Consumer Insights & Research conducted May 15–16, 2024, on the Ipsos eNation omnibus online platform among 1,005 adults age 18+ in the U.S. Sample sizes are consistent wave to wave. The sample can be taken as representative of the general adult U.S. population age 18+. The data is weighted so that the sample composition best reflects the demographic profile of the adult population according to the most recent census data. Where results do not sum to 100 or the “difference” appears to be +/-1 more/less than the actual, this may be due to rounding, multiple responses or the exclusion of “don’t knows” or not stated responses. The precision of Ipsos online polls is calculated using a credibility interval with a poll of 1,000 accurate to +/- 3.5 percentage points. For more information on the Ipsos use of credibility intervals, please visit the Ipsos website (Ipsos.com).

About Voya Financial^®

Voya Financial, Inc. (NYSE: VOYA), is a leading health, wealth and investment company with approximately 9,000 employees who are focused on achieving Voya’s aspirational vision: “Clearing your path to financial confidence and a more fulfilling life.” Through products, solutions and technologies, Voya helps its 15.2 million individual, workplace and institutional clients become well planned, well invested and well protected. Benefitfocus, a Voya company and a leading benefits administration provider, extends the reach of Voya’s workplace benefits and savings offerings by engaging directly with over 12 million employees in the U.S. Certified as a “Great Place to Work” by the Great Place to Work^® Institute, Voya is purpose-driven and committed to conducting business in a way that is economically, ethically, socially and environmentally responsible. Voya has earned recognition as: one of the World’s Most Ethical Companies® by Ethisphere; a member of the Bloomberg Gender-Equality Index; and a “Best Place to Work for Disability Inclusion” on the Disability Equality Index. For more information, visit voya.com. Follow Voya Financial on Facebook, LinkedIn and Instagram.

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