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'The demographic dividend of the last 40 years is ending': J.P. Morgan says the world is running out of the two things that kept interest rates down

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Jensen Huang made his $172 billion fortune on AI chips. His family's $75 million gift to Vanderbilt argues art decides what technology is for

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SuccessGen Z

Gen Z thinks they need almost $9.5 million to be financially successful after anxiously watching their parents unretire

By
Chloe Berger
Chloe Berger
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By
Chloe Berger
Chloe Berger
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January 20, 2025, 4:48 AM ET
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Seeing others struggle to retire, Gen Zers think they need almost double than Gen Xers to be financially successful.Anchiy—Getty Images
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  • Gen Zers consider financial success to be a net worth of $9,469,847, almost twice as much as Gen Xer’s benchmark of $5,295,072.

The benchmark for financial comfort seems to be moving further away with each passing decade. Battling inflation, a thorny housing market, and overwhelming wealth disparity, young adults are taking a look around and figuring they’ll need a fair amount extra to wage the volatile economy in the long run.

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That’s why Gen Zers believe they need almost twice as much as the generation typically known as their parents—Gen X. While Gen Xers believe they need a net worth of $5,295,072 to be successful, Gen Zers estimate that number is at $9,469,847, according to financial service company Empower’s survey of more than 2,200 Americans.

“Younger generations are doing the math and betting on needing more money to reach a future state of financial success,” Rebecca Rickert, head of communications at Empower, explains to Fortune. 

Indeed, the goalpost moves lower as generations age: Millennials figure they’ll require $5,638,205 in net worth and boomers need $1,049,172. The ideal salary follows the same trend with Gen Zers considering $587,797 a successful income, compared to $180,865 for millennials, $212,321 for Gen Xers, and $99,874 for boomers.

Gen Zers— a financially anxious generation

Earlier on in their career and often facing lower salaries than their older counterparts, it makes sense that the youngest working generation is the most financially anxious. The feeling of precariousness is also a fixture of their upbringing.  

“Gen Z is coming up in an era marked by some major economic disruptions, from the pandemic to some of the highest inflation rates in decades, student loan debt and a challenging housing market,” adds Rickert. 

The world appears to be feeling a bit harsher for today’s young adults, who are finding life milestones like a comfortable retirement, having children and home ownership to be increasingly expensive. Young adults are less likely than adults aged 50 and older to believe in the possibility of the American dream, per Pew Research Center’s research.

Gen Xers’ retirement woes

Although Gen Xers estimate they need slightly over $5 million to feel successful, they’re finding that longer lifespans are stretching their dollars thin.

Many Gen Xers now are struggling to save up enough money for retirement, aging in a workforce that no longer provides the same pensions that swaths of boomers were privy to, writes Tiffani Potestam head of distribution at Voya Investment Management for Fortune.

In response to the new conditions, Gen Xers are forced to work longer and sometimes even unretire. A whopping 44% of Gen Xers think it’ll take a “miracle” for them to securely retire, finds a separate survey conducted by Natixis Investment Managers.

But in the end, this all raises another red flag for young workers, “fores[eeing} a world in which they’ll need a sizable cushion to make it,” and thus shaping their job choices, explains Rickert. There’s also a “comparison effect taking place,” as Gen Zers look at their parents and peers’ financial situation.

Despite it all, younger generations are the most confident they’ll achieve their hopes of financial success. Most (71%) Gen Zers believe they’ll reach said goals within their lifetime, compared to 70% of millennials, 53% of Gen Xers, and 45% of baby boomers.

The Fortune 500 Innovation Forum will convene Fortune 500 executives, U.S. policy officials, top founders, and thought leaders to help define what’s next for the American economy, Nov. 16-17 in Detroit. Apply here.
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