Gen Z Saves for Retirement While Exploring Investment Strategies

Generation Z has a positive view of retirement, according to a new SoFi survey, but its approach to building financial security includes strategies that fall outside traditional retirement planning.

Fifty-seven percent of Gen Z respondents said retirement is achievable with a plan in place, compared with 45% of Millennial respondents. Eighty percent of Gen Z respondents also said they were confident they could retire comfortably and maintain their desired lifestyle. The findings come from an online survey of 761 U.S. adults aged 18 through 45 conducted in March. All respondents were actively involved in retirement planning or saving, and the survey included 18- to 29-year-old Gen Z respondents and 30- to 45-year-old Millennials.

The survey also found that Gen Z respondents had specific retirement goals. Forty percent said passive income was their top retirement goal, compared with 35% of Millennials, and Gen Z was somewhat more likely than Millennials to identify building net worth as quickly as possible as a primary retirement goal. At the same time, the younger investors were participating in a financial environment that includes a growing range of investment and speculative activities.

Taking Risks to Build Wealth

A Betterment survey of 1,000 U.S. retail investors across generations found that 52% of Gen Z respondents had redirected money intended for investing toward sports betting during the previous year. Twenty-six percent said they deliberately used sports betting as part of a long-term investing strategy. The survey of retail investors does not reflect the general Gen Z adult population.

Northwestern Mutual’s 2026 Planning & Progress Study found that 32% of Gen Z respondents were currently investing in or considering sports betting or prediction markets, compared with 24% of Millennials. The study also found that among Gen Z respondents who feel financially behind and said they were investing in or considering high-risk or speculative assets, 80% said they believed those investments would help them reach their financial goals more effectively than traditional methods.

The Northwestern Mutual study also found that Gen Z respondents were more likely than older generations to consider other high-risk or speculative assets: 32% were investing in or considering cryptocurrency, 17% options, and 14% meme stocks.

Financial Pressures

Gen Z’s retirement goals also existed alongside current financial pressures. The SoFi survey found that 63% of respondents said everyday costs or housing payments were the biggest factor affecting their ability to save for the future. Inflation was the biggest retirement concern, and 64% of respondents who were saving or trying to save said they had reduced their retirement savings because of inflation.

There was also a greater level of uncertainty about investment choices among Gen Z respondents than Millennials: 21% of Gen Z respondents said they felt overwhelmed by the number of investment options available, compared with 15% of Millennials. Economic and market uncertainty was another significant barrier, cited by 32% of Gen Z respondents.

Family financial responsibilities were another factor. A May 2026 survey of 1,000 U.S. adults by My Guide to Retirement found that 79.7% of respondents had provided financial support to at least one family member or loved one during the previous 12 months. Among Gen Z respondents, 30% said they had withdrawn money from a retirement account because of family responsibilities, compared with 22% of Millennials, 11% of Generation X and 6% of Baby Boomers.

The survey also found that 75% of Gen Z respondents said they felt emotionally responsible for helping a loved one financially, the highest percentage among the generations surveyed. Thirty-eight percent said they struggled with guilt about setting financial boundaries with family members.

For retirement plan advisers, the findings provide several areas for discussion with younger workers, including retirement saving, investment choices, financial pressures, and the distinction between long-term retirement assets and higher-risk investments.

“Many [Gen Z and Millennial workers] have started to save, and while the amounts in their retirement accounts may be modest, they are on the path to building wealth for the future,” the SoFi report stated. “Many of them have started to save, and while the amounts in their retirement accounts may be modest, they are on the path to building wealth for the future. They are flexible and resilient, and ready to pivot when need be.”