Gen Z is still early in their working lives, yet retirement is already on their radar in ways that differ from those of older generations. Surveys indicate that this group began saving earlier amid economic anxiety. They focus more on long-term stability and see retirement as an active phase rather than an endpoint.
Between early access to 401(k) plans and higher financial literacy, their vision of retirement strikes a balance between caution and optimism. Here are ten ways Gen Z plans to spend retirement, based on how they save, work, and think about money today.
Traveling
Credit: Getty Images
Travel sits at the top of Gen Z’s retirement wish list, with 65% saying it is a major priority. Many in this generation started contributing to 401(k) plans in their early 20s, which gives decades of compound growth to fund long trips later in life. Vanguard data shows that nearly half of workers ages 24 to 28 are on track to maintain their current lifestyle in retirement.
Living Simply
Credit: Canva
Gen Z often emphasizes the importance of keeping expenses manageable in retirement. The average retirement savings among all Americans is about $334,000, a figure that masks the number of people who fall short. Watching that reality unfold makes younger workers cautious about lifestyle expectations later on.
Spending Time With Family and Friends
Credit: pexels
About 58% of Gen Z want retirement to mean more time with people they care about. Financial guidelines suggest having one year of salary saved by age 30; yet, the average Gen Z 401(k) balance sits at around $13,500. The gap explains why this generation talks openly about saving early, while still acknowledging that they have work to do.
Working Part-Time
Credit: Getty Images
Many Gen Zers expect some form of paid work during retirement, even if it is limited in scope. This mindset aligns with concerns about inflation and housing costs, which surveys cite as significant worries. Earning part-time income can stretch savings and reduce pressure on retirement accounts.
Pursuing Hobbies
Credit: Getty Images
Roughly 57% of people picture retirement as a time for hobbies, ranging from creative projects to skill-based interests. Many of those hobbies require significant investment over decades, which adds pressure to keep retirement accounts growing. Around 26% of Gen Z workers have already tapped retirement funds early, a habit that could shrink future hobby budgets if it continues.
Maintaining Financial Security
Credit: Getty Images
A significant portion of Gen Z views retirement as an opportunity to maintain stability rather than pursue luxury. Eight in ten U.S. workers believe financial security will be harder to achieve than it was for their parents, according to pension industry research. That belief shapes conservative saving habits and early planning.
Starting a Business
Credit: pexels
Retirement does not always mean stopping work for Gen Z, since 26% want to start a business later in life. Today, 32% already work more than one job, and 59% report having a side hustle. That comfort with flexible income makes entrepreneurship feel like a natural extension of retirement rather than a risk.
Avoiding Full Dependence on Social Security
Credit: Getty Images
Uncertainty about Social Security’s future plays into Gen Z’s plans. Many save early because they assume benefits may be smaller when they retire. This expectation leads to higher participation in employer-sponsored plans than among earlier generations at the same age.
Caring for Grandchildren
Credit: Getty Images
Even with most of Gen Z still far from parenthood, 26% expect to help care for grandchildren in retirement. Surveys show 84% save regularly and 57% follow a budget, habits that support long-term family plans. This reflects a practical outlook shaped by watching older relatives balance work, caregiving, and finances.
Staying Flexible
Credit: Canva
Above all, Gen Z plans for flexibility. Automatic enrollment in retirement plans and early savings give them a head start, but early withdrawals show that financial strain still exists. Retirement is viewed as a phase that adapts not just to income but also to health and family needs, rather than a fixed destination.