MW This is what Gen Z considers the 'ideal' retirement age. It's really young - and not entirely out of reach.

By Alessandra Malito

Most Americans think the ideal retirement age is sometime in their 60s, but Generation Z says it should be earlier

Members of Gen Z say the ideal retirement age is 59, even though they don't expect to retire by then.

Most Americans think the ideal retirement age is sometime in their 60s - but Generation Z says it should be earlier, and they may be in a position to make it a reality.

Members of Gen Z, who were born between 1997 and 2012, believe the ideal retirement age is 59, according to a Manulife John Hancock Retirement report released Tuesday. That is earlier than millennials respondents, who said age 61, and Generation X, who said 64. Baby boomers said 67 is the ideal retirement age - and they should know, as most are already in retirement or at least the closest to it.

The research comes as Americans of all ages are facing a challenging retirement landscape: People are living longer, worker pensions are increasingly rare, housing and healthcare costs are climbing, saving money can be difficult and Social Security's future is murky. So an ideal retirement age of 59 seems audacious and maybe impossible. But it doesn't have to be, because young people have time on their side, and research shows that steady saving and investing over a lifetime can pay off.

"A big part of that is it is so early for them," said Wayne Park, chief executive officer of Manulife John Hancock Retirement, adding that these younger adults may not be in the same mindset as the older peers who are in the middle of their working lives. Many members of Gen Z are just coming out of school, or perhaps on their first or second jobs, Park noted.

While this cohort says 59 is the ideal retirement age, they don't really expect to retire then. Instead, Gen Z respondents said they actually expect to retire at age 67. Young Americans are also more worried about inflation and the cost of living, and are also more likely to rate their financial status as fair or poor compared to their older counterparts.

Get started early

Even if they're not as confident in their finances as others, young adults have a powerful tool on their side. "It is the power of compounding that is the biggest asset," Park said. "At least [they can] get started."

Take for example a 25-year-old straight out of college who is looking to start saving for retirement. If they made a $100 monthly contribution in an investment account that began with $0 and kept that contribution amount the same for 40 years, assuming a conservative and constant 5% interest rate that is compounded annually, they'd have about $145,000 at age 65. The more they contributed, such as after a job switch or a raise, the higher the balance would be. Comparatively, a 40-year-old starting to save the same amount under the same assumptions for 25 years would have a little more than $57,000 by age 65.

There are plenty of hurdles that stop people from saving for retirement regardless of age, such as student debt, starting a family, building a business or buying a home. But despite these challenges, Gen Z does prioritize retirement savings; another study found these young adults began saving at a median age of 19, according to Transamerica Center for Retirement Studies.

Park says workers should take advantage of automatic contributions from their paychecks into retirement accounts, and look into company matches. "Make it easy for yourself," he said. "Don't even look at it."

Don't be pressured to have a high contribution rate right away, such as 15%, said Nathan Sebesta, a certified financial planner and owner of Access Wealth Strategies. "Starting somewhere is far better than waiting," he said.

Along with periodically increasing contribution rates, Sebesta suggests avoiding lifestyle creep (where the amount you spend grows as you earn more money), keeping debts low and investing in long-term diversified growth assets. Also use investment calculators and review your financial plans regularly to keep track of how you're doing and where you're going.

"With consistency and time, retiring earlier becomes far more realistic," Sebesta said.

-Alessandra Malito

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November 18, 2025 13:18 ET (18:18 GMT)

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