Ideas about retirement typically change with every generation, but Gen Z and millennials (ages 42 and younger) face an extra challenge: They’ll likely live much longer than their parents and grandparents. While the average life expectancy in the United States is around 80 years old,¹ the number of centenarians (age 100+) is set to quadruple over the next 30 years.² This means younger people need to plan for and fund more years of retirement, and they may also be working longer. At the same time, high costs and other financial worries can make it tough for them to save the money needed to approach retirement with confidence.

Why employers should care

Although financial well-being is a deeply personal issue, it’s something employers shouldn't overlook. Gen Z and millennials make up 54% of the total workforce,³ and that number is going to grow as more young people enter the labor market. And even though job-hopping is more common these days, younger workers value financial support from their employers. In fact, 60% say their employers influence their financial decisions, and most anticipate using their workplace plan as a primary source of income in retirement.⁴

How Gen Z and millennials feel about their finances and retirement

Our 2024 financial resilience and longevity report⁴ revealed that both Gen Z and millennials are experiencing a significant amount of financial stress. They’re worried about the cost of living, inflation, interest rates, and other economic conditions. There’s good reason for these fears—53% rate their finances as fair or poor. But retirement isn’t completely off their radar. Gen Z and millennials dream of retiring at age 60 but expect to work until age 68 due to financial concerns and obligations. 

Three ways to support Gen Z/millennial retirement planning

About half of Gen Z and millennials say they would save more for retirement if they could juggle their other financial priorities.⁴ Because of this, retirement planning for them requires a different approach. Helping your younger workers prepare for the future starts by helping them improve their current well-being and financial resilience. Here are three ways you can help make a difference.

1 Share strategies to help them develop fundamental financial skills

Guidance on essential skills, such as budgeting, managing debt, and building emergency savings, can help your younger workers take specific actions to improve their current financial situation, reducing their financial stress. And the less stressed they feel, the more likely they can focus on saving for retirement. Offering this kind of support can also help you build goodwill and loyalty.

Financial wellness support Gen Z and millennials want from employers⁴

2 Provide investment basics education to help build their know-how

Many Gen Z and millennials aren’t confident about investing, with only 40% feeling knowledgeable.⁴ Teaching them about different investments, diversification, and market volatility can help them choose investments that align with their goals and address longevity risk.

3 Connect with them through digital channels

Gen Z and millennials have grown up in a digital world, so it’s not surprising that they tend to look to their devices for retirement and financial planning advice. Make sure your plan offers robust digital tools and resources, including a mobile app, to help them manage their money. This support can help position your plan as their go-to resource for reliable information instead of random online finfluencers.

Current methods for receiving advice⁴

As you consider these ideas and others, don’t forget to engage your plan’s financial professional and recordkeeper. They can help you evaluate and enhance your current level of support.

Invest in the financial future of Gen Z and millennials today

You have a unique opportunity to help your Gen Z and millennial workers tackle their financial challenges, including rising costs and the prospect of a decades-long retirement. Consider offering support that helps them feel empowered to take action on their current financial worries, so they can confidently plan for the future they want for themselves. It's a worthy strategy that can pay off for them—and your business—over time.

1 Macrotrends.net, July 2024. 2 “U.S. centenarian population is projected to quadruple over the next 30 years,” Pew Research Center, 1/9/24. 3 “Changes in the U.S. Labor Supply,” Trendlines, U.S. Department of Labor Employment and Training Administration, August 2024. 4 John Hancock’s 10th annual financial resilience and longevity survey, John Hancock, Edelman Public Relations Worldwide Canada Inc. (Edelman), June 2024. This information is general in nature and is not intended to constitute legal or investment advice. Edelman and John Hancock are not affiliated, and neither is responsible for the liabilities of the other. This report presents the results of research conducted by Edelman on behalf of John Hancock. The objectives of this study were to (1) quantify the financial situation and level of financial stress of John Hancock plan participants and American retirees; (2) determine the key triggers of financial stress; (3) understand the extent to which actions, including actual financial behavior and planning activity, ameliorate stress; (4) assess longevity and retirement preparation and readiness; and (5) investigate custom insights around how retirees are faring in retirement. This was an online survey comprising of two participant samples: John Hancock plan participants and American retirees. The John Hancock plan participant sample comprised 2,623 John Hancock plan participants. The survey for this sample was conducted from 5/17/24 through 6/03/24, with an average survey length of approximately 18 minutes per respondent. Respondents were located from a list of eligible plan participants provided by John Hancock. The American retiree sample comprised of 525 retired Americans, sourced through Angus Reid’s research panel. The survey for this sample was conducted from 5/13/24 through 5/28/24, with an average survey length of approximately 12 minutes per respondent. All statistical testing is done at 0.95 significance levels. Percentages in the tables and charts may not total to 100 due to rounding and/or missing categories.