62% of Gen Z Workers Expect Early Retirement; Just 3% of Boomers

By Nathan Brooks

Sixty-two percent of Gen Z workers expect to retire before age 65, according to Payroll Integrations’ annual financial wellness report. Only 3% of Boomers expect the same. Millennials stand at 36%, while Gen X sits at 31%.

That gap gives Gen Z a 26-percentage-point lead over millennials and a 59-point lead over Boomers. Boomers trail all three younger cohorts. Payroll Integrations found that the youngest professionals were also the group most likely to expect an early retirement, even though they were furthest from retirement.

Preparedness behind the confidence gap

Payroll Integrations examined the views of employees and employers across generations. The report links Gen Z’s confidence cautiously to its relative retirement preparedness, saying this proactive approach may shape the group’s long-term financial outlook.

Participation data supports that interpretation. Payroll Integrations found the following shares already contributing to a retirement plan:

• Gen Z: 90%
• Millennials: 81%
• Gen X: 83%
• Boomers: 75%

Gen Z’s participation rate leads millennials by nine percentage points, Gen X by seven and Boomers by 15. That is the highest retirement-plan contribution rate in the report.

The early-retirement gap does not run in a neat age order. Millennials trail Gen Z by 26 percentage points but exceed Gen X by five and Boomers by 33. Gen X exceeds Boomers by 28 points.

Earlier retirement-account formation

Recent Investment Company Institute (ICI) data cited by Payroll Integrations shows the number of Gen Z households with retirement accounts is three times higher than the number of Gen X households at the same age. The comparison holds age constant, making it a direct measure of early account formation rather than a comparison of all adults.

Gen Z also leads on expectations for comfort in retirement. Payroll Integrations found that 48% of Gen Z workers believe they will be able to retire comfortably, compared with 38% of millennials, 31% of Gen X and 22% of Boomers.

The confidence gaps are widest against Boomers: 26 percentage points on comfortable retirement and 59 points on retiring before 65. Against millennials, Gen Z leads by 10 points on comfort and 26 points on early retirement.

The account ratio and participation figures point in the same direction. Gen Z appears more engaged with retirement saving at an earlier stage than Gen X peers. Payroll Integrations presents that relationship as a possible influence, not proof that earlier account ownership causes greater confidence.

The report does not disclose account balances, contribution amounts or projected retirement income. Its evidence measures adoption and expectations, not whether workers have enough savings to finance the retirement they expect.

A separate U.S. Bank report on young Americans’ investing patterns emphasizes the role of a plan.

Scott Ford, U.S. Bank’s president of wealth management, said: “There may be no single playbook for building wealth, but having a plan can help you understand the choices in front of you, assess them against your goals and decide what makes sense for your financial situation.”

What does this change for workers and employers?

For employers, Payroll Integrations’ findings make retirement readiness an early-career issue, not a topic reserved for employees nearing the end of their working lives. The data show Gen Z workers contributing at higher rates and opening retirement accounts earlier than Gen X peers.

The practical issue is engagement, not one prescribed investing path. Ford’s point gives employers a way to frame financial-wellness support: help workers assess choices against their own goals rather than push a single strategy.

For workers, the report offers evidence that acting early can coexist with optimism. It does not make early retirement certain, because the data measure expectations and participation rather than realized retirement outcomes.

For benefits teams, the data put engagement earlier in the employment relationship. The report prescribes no product or contribution level. It shows a workforce opening retirement accounts sooner, which makes retirement education a current operating issue.

Payroll Integrations’ conclusion remains restrained: earlier retirement-account ownership may influence Gen Z’s long-term outlook. The next measure is whether high participation persists as this cohort moves toward retirement, which will show whether today’s optimism becomes a durable outcome.