Vanguard Analysis Shows Gen Z More Retirement-Ready Than Boomers, But Only 40% Are on Track
A new analysis by Vanguard reveals that despite having less wealth than baby boomers, a larger percentage of Generation Z workers are projected to maintain their current lifestyle in retirement. According to the firm's 2025 Retirement Outlook study, only 40% of baby boomers—those aged 61–65—are on track for retirement compared with 47% of Gen Z (ages 24–28). The difference is attributed partly to better access and design features in workplace retirement plans among younger workers. These include automatic enrollment, contribution increases, and target-date funds that simplify investing decisions. The study also highlights the projected spending shortfalls: for median Gen Z workers it's $3,000 annually (7% of their needs), while baby boomers face a much larger shortfall of about $9,000 per year (24%). Vanguard emphasizes that older workers still have opportunities to improve retirement readiness by maximizing contributions and seeking professional financial advice. The 2026 contribution limits for most defined-contribution plans are up to $35,750 with catch-up provisions for those aged 60–63. The findings challenge the common perception that younger generations lack financial responsibility or foresight.
Topics: generational wealth retirement readiness Vanguard report