Retirement Planning Across Generations: What Each Age Group Should Focus On Now

When I talk with clients about retirement planning, I often hear the same concern regardless of their age: "Am I doing enough?" Whether just starting your career or approaching retirement, this question reflects a universal desire for security and confidence about the future.

The truth is that effective retirement planning looks different at each stage of life. What's right for a 25-year-old isn't the same as what's right for someone at 55. But here's what I've learned after two decades in this industry: it's never too early to start, and it's never too late to improve your strategy.

In this guide, I'll share targeted advice for each generation, focusing on the most impactful actions you can take based on your life stage.

Retirement Planning For Gen Z (Ages 18-26): Building Strong Foundations

If you're in this age group, retirement might seem impossibly distant. I get it—I was there once, too. Retirement planning wasn't even on my radar in my twenties. I focused more on immediate needs and looking successful rather than building absolute financial security.

That's a mistake I hope you can avoid.

Your Top Priorities:

1. Start the habit of saving, even if it's small The amount matters less than establishing the habit. Thanks to compound interest, even $50 a month invested in your 20s can grow to significant sums by retirement age.

2. Take full advantage of employer matching in 401(k)s If your employer offers matching contributions, this is free money. Contribute at least enough to get the full match—it's an immediate 100% return on your investment.

3. Build your financial literacy. Understanding basic investment concepts now will pay dividends (literally and figuratively) throughout your life. Follow financial educators, read books, and don't be afraid to ask questions.

4. Establish good credit Your credit score will impact major financial decisions throughout your life. Learn how credit works and use it responsibly.

   
   

What I Wish I'd Known:

In my early twenties, I racked up credit card debt trying to maintain an image rather than building real wealth. Trust me when I say: the peace of mind that comes from financial security feels far better than any status symbol you can buy on credit.

For Millennials (Ages 27-42): Balancing Competing Priorities

Many millennials are juggling multiple financial priorities—perhaps student loans, mortgages, young children, and career advancement. This generation faces unique challenges, including having lived through multiple economic crises during their formative years.

Your Top Priorities:

1. Increase retirement contributions as your income grows As you advance in your career, aim to increase your retirement contributions by at least 1-2% each year until you reach 15-20% of your income.

2. Tackle high-interest debt Prioritize paying down debt with interest rates above 6-7%, while still maintaining retirement contributions.

3. Build your emergency fund Aim for 3-6 months of essential expenses in an easily accessible account. This prevents you from tapping retirement funds during unexpected challenges.

4. Consider life insurance and estate planning If you have dependents, proper protection isn't just smart—it's an act of love.

   
   

What I've Observed:

Many millennials delay retirement saving while focusing on debt repayment. While this is understandable, time is your greatest advantage in building wealth. Finding even a small amount to contribute while paying down debt can make a meaningful difference.

For Gen X (Ages 43-58): The Critical Acceleration Phase

If you're in this age group, retirement is no longer a distant concept. These years represent a critical window to accelerate your retirement savings and make adjustments to your strategy. Many Gen Xers are in their peak earning years while also supporting children and possibly aging parents.

Your Top Priorities:

1. Maximize retirement contributions Take advantage of catch-up contributions (available starting at age 50) and consider supplementing employer plans with IRAs.

2. Reassess your investment allocation Ensure your investment strategy aligns with your time horizon. Too conservative too early can limit growth, while too aggressive later may expose you to unnecessary risk.

3. Run detailed retirement projections Now is the time to get specific about your retirement needs and whether you're on track to meet them.

4. Consider long-term care planning Start exploring options for protecting your assets from potential long-term care costs.

   
   

What I've Observed:

This is often the age group that realizes retirement is approaching faster than expected. The good news is that focused effort during these years can significantly impact your retirement readiness.

For Baby Boomers (Ages 59-77): Refining and Transitioning

Whether you're already retired or approaching that milestone, this phase is about refining your strategy and preparing for the transition from accumulating assets to distributing them.

Your Top Priorities:

1. Develop a retirement income strategy Determine which accounts to draw from first and how to create sustainable income from your savings.

2. Understand Social Security optimization. The difference between claiming strategies can amount to tens of thousands of dollars over your lifetime.

3. Review Medicare options Healthcare costs are a significant expense in retirement. Understanding your Medicare choices is crucial.

4. Update estate planning documents Ensure your wishes are documented and that your loved ones are protected.

   
   

What I've Observed:

Many clients in this age group worry about market volatility affecting their retirement security. A well-thought-out income strategy that accounts for market fluctuations can help provide peace of mind.

A Note on Intergenerational Planning

Some of the most successful retirement strategies I've seen involve open communication across generations. Whether grandparents are helping fund education for grandchildren (potentially reducing college debt that could later hinder retirement saving) or adult children are helping aging parents navigate healthcare decisions, intergenerational planning can benefit everyone involved.

One Final Thought

No matter your age, the most important step is to begin with an honest assessment and then take action. I've seen 60-year-olds turn their retirement prospects around in just a few years with focused effort, and I've watched 25-year-olds build remarkable security through consistent habits.

Remember—it's not about comparing yourself to others or feeling shame about past decisions. It's about making the best choices you can from this point forward.

If you'd like a personalized assessment of your retirement readiness and strategies tailored to your specific situation, we're here to help. Sometimes the most valuable thing we provide isn't just expertise—clarity and confidence about your financial future.

Brandon Dixon-James, CFP®, is the President and Co-Founder of Resilient Wealth Management with over 20 years of experience helping clients navigate their financial journeys.