If Your 401(k) Reaches This Number, You're Ahead Of Most Gen Zers

With the oldest members of Gen Z hitting age 29 in 2026, it's safe to say that many in this generation are officially in the workforce. That also means they're old (or young) enough to start planning for retirement. As such, according to a June 2025 report from Transamerica Center for Retirement Studies, Gen Z is, on average, planning for retirement earlier than older generations did. Gen Z workers who are saving for retirement started at a median age of 20, versus 26 for millennials, 30 for Gen X, and 35 for baby boomers.

However, Gen Z's early start doesn't necessarily mean they have larger balances yet. Fidelity data found that the average Gen Z 401(k) balance, as of Q4 2024, was around $13,500 — far below millennials at roughly $67,300 and Gen X at over $190,000. With this in mind, while it might be easier to outpace most Gen Zers than you might have originally thought, there is more to the story when it comes to understanding Gen Z 401(k) balances.

One major reason the Gen Z 401(k) benchmark is so low is that many Gen Z workers are still not fully plugged into the 401(k) system yet. In fact, Transamerica found that only 67% of Gen Z reported being offered an employee-funded 401(k) compared to 80% of millennials and 77% of Gen X. Among those who were offered one, only 69% chose to participate with another 26% reporting they had already taken a heavily penalized early and/or hardship withdrawal from a retirement account.

When you consider all of these factors — and that Gen Zers face financial pressure from things like student loan debt and cost-of-living demands – Gen Z's average 401(k) balance becomes a lot more impressive. It means that those who are saving are doing so pretty aggressively. For example, the median salary deferral rate, or paycheck contribution amount, for Gen Z workers is 15% compared to 10% for millennials, Gen X, and baby boomers. Plus, 55% of Gen Z participants contribute more than 10% of their pay — making them the highest "super savers" of any generation in Transamerica's survey.