Gen Z and Millennials Dreaming of Early Retirement with Seven-Figure Savings

Gen Z and millennials are already dreaming of early retirement, with ambitious plans to accumulate seven-figure sums before kicking back and enjoying their golden years. A recent YouGov survey uncovered that millennials are aiming for a retirement nest egg between $1 million and $2 million, while the majority of Gen Zers believe they can comfortably live off $500,000 to $1 million.

Surprisingly, 14% of Gen Zers are eyeing retirement in their forties, double the number of millennials who have similar aspirations. However, with an estimated life expectancy of around 100 years old, Gen Zers will need to stretch their retirement savings over a staggering 60 years.

Despite these optimistic retirement goals, the reality is that many Americans are finding it increasingly difficult to retire comfortably. A significant number of baby boomers and late Gen Xers have been forced to unretire or delay retirement due to insufficient pension funds. The cost of living is higher than expected for many retirees, and their retirement income is no longer enough to cover expenses.

The average American now believes they need $1.46 million to retire comfortably, a significant increase from previous years. The number of Americans working past the age of 65 has quadrupled since the 1980s, with nearly 20% of Americans 65 and older currently employed.

For Gen Z and millennials looking to retire as millionaires, financial expert Suze Orman advises starting early and taking advantage of compound growth. By investing $100 monthly with a 12% yield, one could accumulate over $1 million in 40 years. Orman emphasizes the importance of starting early and understanding the power of compounding to achieve financial freedom in retirement.