Turns out that Gen Z might be the first generation in a while to not fall behind when it comes to retirement savings. According to Vanguard’s latest 2025 research, these younger workers are not just keeping up. They are outpacing their older peers.

Nearly half of Gen Z workers are on track to keep their lifestyle after retirement. That is better than millennials, Gen X, and even baby boomers.

It is a twist no one saw coming. Gen Z has been weighed down with debt from the start. Think student loans, rising rent, car payments, and more. Yet somehow, they are still managing to sock away enough for the future. That is not because they are budgeting wizards. It is because the system has shifted in their favor.

The Retirement System Just Got Smarter

Today’s retirement plans are more effective than they were 20 or even 10 years ago. Workplace savings programs, such as 401(k)s, are reaching more people and are designed to do the heavy lifting. Just having a plan through work nearly doubles your chance of being on track for retirement.

Vanguard’s report says 74% of Gen Z workers will have access to these plans by age 65. Compare that to just 55% of boomers. That is a huge difference. Access alone sets them up for success, and plan design takes it a step further.

Olly / Pexels / One big reason Gen Z is doing well is auto features. Most new plans enroll you automatically. You don’t have to remember to sign up.

Then, over time, your savings rate increases gradually, without you taking any action. These plans also steer your money into target-date funds, so your investments stay balanced for your age.

Gen Z doesn't need to make perfect financial decisions every step of the way. The system nudges them in the right direction. It is saving without the stress, and it works.

Debt Is Still a Big Deal, Though

Even with smarter savings tools, Gen Z and millennials face tough headwinds. Debt eats up about a quarter of their income. That is no small thing. Student loans, credit cards, and car payments chip away at what could go toward savings or investments.

So, while they are ahead in terms of retirement trajectory, they still need to keep an eye on the bigger picture.

Older Workers Need Different Tools

Gen X and baby boomers are in a tougher spot. For them, the window to benefit from automatic enrollment or smarter plan design is closing fast. Most of their working years were spent under an older, less efficient system. The fixes that work for Gen Z won’t help them much now.

Olly / Pexels / Vanguard points out that tapping into home equity is a strong move. Downsizing, relocating, or even renting out part of a home can unlock hidden value.

For boomers who are way behind, this one shift could change their retirement outlook in a big way.

Working longer also helps. Just two more years on the job can lead to significant gains in savings, higher Social Security payments, and fewer years to fund. If your health allows it, staying in the workforce can be one of the smartest retirement decisions you make.

Simple Moves to Get on Track

Vanguard’s research shows you don’t need a finance degree to boost your retirement game. The right moves, made consistently, can close the gap—no matter your age.

Start with your workplace plan. If you have got one, use it. Max out that employer match. Let the automatic features work in your favor. If you have changed jobs a few times, bring your old accounts together. Having everything in one place makes it easier to manage and saves on fees.