Younger Americans Enter Workplace Retirement Plans Earlier than Gen X, Boomers

Core Insights - Younger generations, specifically Gen Z and millennials, are starting to save for retirement significantly earlier than previous generations, with average starting ages of 23 and 28 respectively, compared to Gen X at 34 and Boomers at 40 [1][4] Group 1: Financial Behavior and Trends - Over half of Gen Z and millennials have sought assistance from financial planners, indicating a strong opportunity for financial advisors to engage with younger clients [2] - The SECURE 2.0 Act has mandated automatic enrollment in new retirement plans, contributing to a tripling of automatic enrollment in defined contribution plans since 2007 [3] - Younger savers exhibit proactive financial habits, such as checking balances weekly and planning for market volatility, with 70% having a strategy to safeguard their savings before retirement [7] Group 2: Confidence and Attitudes Towards Retirement - Approximately 80% of Gen Zers and millennials feel positive about their retirement plans, with nearly half expressing confidence in their savings, contrasting with only one-third of Gen X and one-quarter of Boomers [7] - Financial advisors note that while younger savers may contribute smaller dollar amounts, their strong saving habits can lead to significant long-term benefits [5]