Young savers surge ahead as older generations count the cost of waiting

A widening generational gap in retirement behavior is reshaping the advisory landscape and putting advisors at the center of two very different client mindsets.

New research from the Nationwide Retirement Institute finds that Gen Z and Millennial workers are engaging with retirement savings earlier and more actively than Gen X and Baby Boomers, who are more likely to be grappling with regret about missed opportunities.

On average, Gen Z respondents started contributing to workplace retirement plans at age 23, and Millennials at 28, but Gen X’s average starting age was 34 and Boomers typically waited until 40.  That decade‑long head start is translating into both better preparedness and greater confidence among younger workers.

The research shows that younger savers are also more hands‑on, tending to check balances frequently, raise contributions on a regular cadence, and pay attention to how market volatility might affect long‑term goals.  This opens the door for advisor-client discussions to move beyond basic enrollment conversations into earlier discussions about asset allocation, tax diversification, and the trade‑offs around student debt and other obligations.

For older generations, there are regrets with more than 80% of Gen X and Boomer respondents saying that they wish they had started to save or joined their employer‑sponsored plan sooner.  A similar share also wishes they had focused earlier on shielding savings from market swings or converting assets into sustainable retirement income.

Among those who began saving by age 25, about three quarters describe themselves as confident or cautiously optimistic about their retirement prospects, compared with just 46% of those who started later. 

Cathy Marasco, head of Protected Retirement at Nationwide, notes that the firm’s research shows “how different generations approach retirement – and what we can learn from them,” adding that, “Younger savers are showing that early engagement and proactive planning can create confidence and resilience, while older generations offer valuable perspective on the risks of waiting to take action.”