While older generations worry about having enough money for retirement, many Gen Z workers aren’t even starting to save. Research in 2025 by Edward Jones and Morning Consult shows that nearly half haven’t begun setting money aside for their golden years, and only 22% are contributing to a workplace retirement plan.

The culprit is a perfect storm of financial pressures that can make saving for the future feel impossible.

One of the biggest challenges this generation faces is debt. High-interest credit card balances and persistent student loan payments leave many feeling they’re just trying to stay afloat, rather than planning decades ahead.

The cost of living doesn’t help either. Nearly 60% of Gen Z renters are considered “rent-burdened,” spending more than 30% of their pre-tax income on rent, according to a StreetEasy analysis of U.S. Census Bureau data. Rising prices driven by inflation and tariffs squeeze budgets further, moving retirement savings down the priority list.

The nature of work has also changed. Gen Z is more likely than previous generations to hold gig jobs, contract positions or other flexible work arrangements that often don’t include employer retirement plans, according to Pew Research. Even when plans are available, only 22% participate. Feeling overwhelmed by jargon, confused by investment choices or focusing only on today’s experiences and technology can all delay participation. These early gaps may lead to catch-up needs later in life.

Unfortunately, Gen Z has little faith in the retirement safety net. Only about a third of Gen Z-ers say they believe Social Security will still exist when they retire, according to the latest information from the CATO Institute.

Fortunately, there are steps Gen Z can take now to get their retirement savings off to a good start:

Start small: Even a few dollars per paycheck builds a savings habit and gets compounding interest working in their favor. Early momentum matters more than starting big.

Let compounding do its work: Small, consistent contributions can grow dramatically over time, especially when they have decades to accumulate.

Use a workplace retirement account: For anyone with access to a plan, enroll and contribute at least enough to receive any employer match. It’s one of the few forms of “free money” available.

Open an IRA: If no plan is available through work, take charge by opening an individual retirement account (IRA).

Simplify investing: If the choices feel confusing, consider options such as a target date fund, which reduces complexity and helps keep you properly invested without needing expert advice.

Use found money: Direct tax refunds, bonuses or gig income into retirement savings to boost progress without straining the monthly budget.

Automate contributions: Automatic transfers make saving effortless. Review this annually and increase contributions as income grows.

Build confidence: If investing feels overwhelming, look for quick financial education resources from an employer, plan provider or reputable nonprofit organization. Even a little knowledge can make decisions easier.

The path to retirement doesn’t require perfection — just progress. Building consistency early helps create choices, security and financial breathing room later in life.

This article was written by Edward Jones for use by your local Edward Jones financial advisor.

Mark Freeman
Edward Jones Financial Advisor
77 West Main Street, Hopkinton, MA
508-293-4017
Mark.Freeman@edwardjones.com

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