It’s so simple: they realized they will have no support during their retirement and will have to rely solely on whatever they have saved and invested.
SpareManagement2215 on
millenials are traumatized from the 2008 recession, and gen z knows that they’ll never be able to retire unless they save for it themselves.
interesting article to read tho given the common narrative seems to be that gen z has no hope and is not saving.
ironteddybear on
Yes, but that increased savings is largely driven by the lack of housing stock, expectations for a reduced social security, and other factors where millennials are concerned about future prosperity.
Yeah I’m very lucky we can live off my salary. It’s a little tight but we just invest and save my wife’s. I’m a bit stressed for my retirement I’m terrified my kids won’t be able to afford anything so I’m saving for their future.
Responsible-Food3681 on
I for one wouldn’t have as much liquid cash saved up – nor as high of a 401k balance – if housing prices were sensible enough for me to purchase a home instead of renting. I would rather have that money building real equity against a tangible asset for me instead of sitting in my savings account or investing in my 401k/the stock market.
Even if that money in the stock market does grow, it’s not linked to any tangible assets, it could be drastically reduced at any time, and it doesn’t help me fully satisfy the second step of Maslow’s hierarchy of needs: shelter. I want the security of owning my own home and not being beholden to another owner’s whims. I would prefer that security over a fully optimized, more profitable investment strategy that doesn’t result in me owning my place of living. Since I can’t afford that, I save more money and invest more in financial products.
VanCityPhotoNewbie on
Someone pointed out the irony of all of this.
Gen Z has no hope but to invest in AI driven growth right now because it is the only means to make meaningful investment gains for their savings against inflation (if you invest in S&P, you are AI top heavy anyways). As they invest into AI and tech companies, they are giving capital for companies to replace their jobs as employment opportunities are disappearing for their generation.
**They are have no choice but to save up so they can fund their own coffin.** That is why people always say “Gen Z is so negative”, “Gen Z age harder”…blah blah blah. They know they are screwed no matter what they do
Knerd5 on
Me thinks this has a lot to do with how much access to a 401k at a young age those generations have. As soon as I had access I put in the match and had it auto raise it 1% a year. Now I’m at like 13% and maxing it out is a few years down the road.
7 Comments
It’s so simple: they realized they will have no support during their retirement and will have to rely solely on whatever they have saved and invested.
millenials are traumatized from the 2008 recession, and gen z knows that they’ll never be able to retire unless they save for it themselves.
interesting article to read tho given the common narrative seems to be that gen z has no hope and is not saving.
Yes, but that increased savings is largely driven by the lack of housing stock, expectations for a reduced social security, and other factors where millennials are concerned about future prosperity.
https://www.npr.org/2025/06/18/nx-s1-5436828/social-security-benefits-cut-congress
https://www.axios.com/2025/11/29/stocks-retirement-gen-z
Yeah I’m very lucky we can live off my salary. It’s a little tight but we just invest and save my wife’s. I’m a bit stressed for my retirement I’m terrified my kids won’t be able to afford anything so I’m saving for their future.
I for one wouldn’t have as much liquid cash saved up – nor as high of a 401k balance – if housing prices were sensible enough for me to purchase a home instead of renting. I would rather have that money building real equity against a tangible asset for me instead of sitting in my savings account or investing in my 401k/the stock market.
Even if that money in the stock market does grow, it’s not linked to any tangible assets, it could be drastically reduced at any time, and it doesn’t help me fully satisfy the second step of Maslow’s hierarchy of needs: shelter. I want the security of owning my own home and not being beholden to another owner’s whims. I would prefer that security over a fully optimized, more profitable investment strategy that doesn’t result in me owning my place of living. Since I can’t afford that, I save more money and invest more in financial products.
Someone pointed out the irony of all of this.
Gen Z has no hope but to invest in AI driven growth right now because it is the only means to make meaningful investment gains for their savings against inflation (if you invest in S&P, you are AI top heavy anyways). As they invest into AI and tech companies, they are giving capital for companies to replace their jobs as employment opportunities are disappearing for their generation.
**They are have no choice but to save up so they can fund their own coffin.** That is why people always say “Gen Z is so negative”, “Gen Z age harder”…blah blah blah. They know they are screwed no matter what they do
Me thinks this has a lot to do with how much access to a 401k at a young age those generations have. As soon as I had access I put in the match and had it auto raise it 1% a year. Now I’m at like 13% and maxing it out is a few years down the road.