According to a recent study, Gen Z workers expect to retire at age 61, on average—years earlier than older generations, Fast Company reported. The 2023 401(k) Participant Study, by Charles Schwab, found that the average expected retirement age is 64 among millennials, 65 among members of Gen X and 68 among baby boomers.

But even though Gen Z workers expect to retire at the youngest age, 99 percent of them said they face obstacles to saving for a comfortable retirement. High percentages of the other generations said the same, including  88 percent of millennials, 91 percent of Gen X workers, and 86 percent of boomers.

Among the obstacles to a comfortable retirement that Gen Z workers mentioned were inflation (54 percent), keeping up with expenses (36 percent), unexpected expenses (31 percent), helping aging parents financially (30 percent), saving/paying for children’s education (28 percent), stock market volatility (27 percent), paying off credit card debt (25 percent).

The study also reported that 26 of Gen X workers find that financial stress affects their ability to do their jobs, compared to 22 percent of millennials, 15 percent of Gen X workers and 10 percent of baby boomers.

In addition, the study found that younger workers are more willing to give up a percentage of their salary raise for better benefits or a more flexible work arrangement. Fully 86 percent of Gen Z workers are willing to forgo a raise in exchange for better benefits, compared to 74 percent of millennials, 60 percent of Gen X workers and 50 percent of baby boomers. And 76 percent of them were willing to forgo a raise in exchange for a more flexible work arrangement, compared to 67 percent of millennials, 49 percent of Gen X workers and 29 percent of baby boomers.

When it comes to financial planning, Gen Z is the generation most likely to want personalized investment advice and to need help choosing investments for their 401(k). Eighty-three percent said they would like personalized investment advice for their 401(k)s, compared to 78 percent of millennials, 75 percent of Gen X workers and 62 percent of baby boomers. 

Yet Gen Z workers are also the most comfortable using artificial intelligence (AI)-based digital tools for financial planning. Fully 75 percent of them said that they are comfortable asking AI tools, compared to  66 percent of millennials, 48 percent of Gen X workers and 25 percent of baby boomers.

The study was conducted online by Logica Research from April 19 through May 2, 2023. One thousand 401(k) plan participants, aged 21-70, completed the survey. The participants all worked for companies with 25-plus employees that have 401(k) plans and the participants all contribute to those plans. In order to analyze Gen Z results against other generations, an additional 100 plan participants aged 21 to 26 completed the survey.