Gen Z Shares Ideal Retirement Age but Admits They Will Work Far Beyond It

Core Insights - Gen Z's ideal retirement age is 59, but they expect to retire at 67, indicating a significant gap between aspiration and expectation [2][4] - Millennials desire to retire at age 61, yet anticipate retirement at age 69, reflecting a similar trend across generations [3][4] Retirement Preparedness - Gen Z and Millennials show the highest proportion of individuals considered prepared for retirement compared to older generations [5] - Increased access to defined contribution plans like 401(k)s has improved retirement savings potential for younger generations compared to Baby Boomers [5][8] 401(k) Plan Features - Recent legislative changes have allowed for automatic investment in qualified default investment alternatives (QDIAs) within 401(k) plans, simplifying the investment process for employees [6][7] - The design of 401(k) plans has evolved, making it easier for younger individuals to save for retirement [6][8] Impact of Early Saving - Early saving significantly benefits younger generations due to a longer investment horizon and the advantages of compound interest [8] - A hypothetical scenario illustrates that a 25-year-old investing $500 monthly at an 8% annual return could accumulate over $1.6 million by age 65, compared to approximately $286,000 for someone starting at age 45 [9]