Planning for retirement can be like trying to hit a moving target that is sometimes invisible. It can be difficult to know how much to set aside and which savings and investment tools to use. Add to this the ever-changing investment landscape and not knowing what expenses will come along after retirement, especially regarding health care and long-term care, and these factors make retirement planning challenging for Americans.
Financial concerns and preparation strategies vary among different generations of Americans. From baby boomers entering retirement to Gen Zers just beginning their careers, members of each generation face unique obstacles and approaches while planning for their retirement years.
Since 2019, Fidelity Investments has conducted a study examining how people view and plan for retirement. Fidelity’s 2025 study reviewed four generations of Americans: baby boomers, Generation X, millennials, and Generation Z.
The findings reveal varying levels of confidence and preparedness across age groups, influenced by economic factors and unique generational challenges. Overall, 67 percent of Americans surveyed expressed confidence in their retirement prospects. However, this is down 7 percentage points from 2024. This year’s study also addressed retirees, most of whom are baby boomers, and how retirement is going for them.
Many baby boomers (born 1946-1964) are either retired or nearing retirement. The study reveals that over 70 percent of recent retirees feel their retirement is proceeding as planned. Nonetheless, many have been surprised by recent stock market declines and rising costs, particularly in health care. Sixty-eight percent are confident in their retirement plans.
The top three sources of retirement income for current retirees include Social Security (77 percent), pensions (48 percent), and personal savings (41 percent). Though many benefited from employer-sponsored pensions earlier in their careers, the shift to 401(k) plans and personal savings has left some struggling to maintain their desired lifestyle.
Amid market downturns, rising health care costs, and increased life expectancy, some boomers are waiting until full retirement age to collect Social Security or else seeking part-time work to supplement their income.
Gen X (born 1965-1980) exhibits the lowest confidence, with only 53 percent feeling assured about retiring on their own terms. This group faces unique challenges, such as juggling mortgages, children’s education expenses, and caring for aging parents, which hinder their ability to save adequately for retirement. Many are behind on savings due to economic downturns, student loan debt, and high living costs. At 45 percent, Gen Xers said that saving enough money for retirement is their biggest challenge, the highest percentage among the four generations surveyed.
Many Gen Xers, afraid they won’t have enough saved by retirement, may be able to prepare by increasing their 401(k) plan and individual retirement account contributions or investing in real estate or other assets to create additional income streams.
Millennials (born 1981-1996) show a 71 percent confidence level in their retirement planning even though they face significant hurdles with student loan debt, high housing costs, and job market instability delaying their ability to save. Many also entered the workforce during the Great Recession, affecting their earnings and savings potential early on.
Influenced by the pandemic’s effects on work-life balance, this generation is actively seeking nontraditional retirement paths, with 73 percent indicating a desire to focus on personal passions and dreams.
Many millennials work in unconventional roles without access to employer-sponsored retirement plans. Those who can’t take advantage of these options are seeking to invest in the stock market or cryptocurrency.
Gen Z (born 1997-2012) is just entering the workforce, but they have already witnessed economic downturns, high inflation, and discussions about Social Security’s longevity. As a result, they are more financially cautious than previous generations at their age. Seventy-five percent express confidence in their ability to retire on their own terms. This optimism is likely a result of many being in the early stages of their careers.
Amid rising inflation and housing costs that may hinder their savings efforts, Gen Zers can benefit from prioritizing financial literacy to make informed investment and savings decisions.
Even though sources of retirement income will be different for the next generation of retirees, today’s retirees can offer helpful advice to those succeeding them. Here are some tips for individuals who are beginning to plan for, or are approaching, retirement:
As economic landscapes continue to change, retirement readiness remains a moving target. Regardless of generational differences, prioritizing long-term financial planning and adapting to changing financial realities will be essential for ensuring a stable and fulfilling retirement.
Plan for the best possible retirement by working with your financial planner and your estate planning attorney.
Takeaways Shannen Doherty’s divorce from Kurt Iswarienko was finalized two days after her death, allowing her to control the distribution of her assets in her estate plan. If a divorce is not finalized before one spouse passes away, the surviving...
Takeaways Republicans are pushing to repeal the federal estate tax, which they call the “death tax,” arguing it burdens family businesses and farms. Democrats contend it is a key tool for reducing wealth concentration. The tax currently applies to...
Takeaways Family problems can become legal issues when a loved one needs end-of-life care or passes away, leaving an inheritance. A comprehensive estate plan can help your loved ones avoid family fights by addressing potential issues before they...
Estate planning involves various legal instruments, such as wills, trusts, powers of attorney, and healthcare directives. We specialize in estate planning, ensuring that your documents comply with the ever-changing state and federal laws. We can help you navigate intricate legal requirements, minimizing the risk of costly errors and potential disputes.
Every person's financial situation and family dynamics are unique. We will take the time to understand your goals and circumstances, allowing for the creation an estate plan that suits your individual situation.
We can assist you in structuring your estate plan to protect your assets from potential creditors, lawsuits, and taxation. Our experience can also help you employ strategies to minimize tax liabilities.
Probate is the legal process through which a deceased person's assets are distributed. It can be time-consuming and costly. We can help you explore options to minimize or avoid the probate process, allowing your beneficiaries to receive their inheritances more quickly and efficiently.
When estate plans are unclear or disputed, it can lead to conflicts and legal battles. We can help you draft clear and legally sound documents that minimize the chances of disputes among heirs and beneficiaries. In the event that a dispute arises, we can also represent your interests and work toward an amicable resolution.
Estate plans need to be reviewed and updated periodically to reflect changes in your financial situation, family dynamics, and applicable laws. We can provide ongoing support and guidance, ensuring that your estate plan remains current and effective.
Engaging a law firm for estate planning provides peace of mind, knowing that your affairs are in capable hands. It allows you to focus on enjoying your life without the constant worry of what may happen to your assets and loved ones in the future.
Mon - Thurs: 9AM - 5PM
Friday: 9AM - 2PM