How Gen Z is ahead in retirement savings — still the 'irresponsible' TikTok generation?

Once upon a time, if you asked a 25-year-old about 'retirement,' you would probably get the verbal equivalent of a giant “???”

But Gen Z is one step ahead. Born between 1997 and 2012 (also known as the ages 13 to 28 in 2025), they’re the generation proving you can love your avocado toast and grow your 401(k). They're clearly more than just 'OOTD' and 'Skibidi'.

Unlike millennials — who took time to warming up to retirement plans — Gen Z is jumping in early. Research from the Investment Company Institute and the University of Chicago found that zoomers are 'outpacing' earlier generations, with more than three times the assets in their 401(k)s than Gen X households had at the same age in 1989 (inflation-adjusted, of course). Basically, they’re saving like their futures depend on it… because they do.

And it’s not just one study. The TransAmerica Center for Retirement Studies crowned Gen Z the overachievers of the savings game, noting that many are stashing away as much as 20 per cent of their income for the future. Yes, while still living with roommates and side-hustling, they’re thinking decades ahead.

 The key takeaways

Of course, not every zoomer has stacks of cash lying around. A 2024 TIAA survey of 18- to 24-year-olds showed the real math: 51% of their budgets go to housing, and nearly 30 per cent live paycheck to paycheck. Still, 20 per cent are carving out something — anything — for retirement.

 And where are they learning this money wisdom? Not from dusty finance textbooks. 65 per cent turn to social media, following financial advisors and “finfluencers” who break down investing into TikToks and reels. That said, parents still hold sway: 61 per cent admit mom and dad are still their go-to advisors.

So yes, Gen Z knows the struggle is real. Rent is high, lattes aren’t cheap, and side hustles don’t always pay the bills. But they’re proving that you can scroll, stream, and still stash away for retirement, contrary to all the flak they get for being irresponsible and entitled.