Cost of living makes retirement savings harder for younger generations, survey finds

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A recent report by Fidelity Investments reveals that more than half of Millennials and Gen Z expect saving for retirement to be tougher due to the rising cost of living. 

The study found that 57% of Millennials and 56% of Gen Z feel this way, compared to 38% of Gen X and 16% of Boomers. 

Respondents across generations highlighted inflation, consumer debt, and the need for emergency savings as major obstacles to retirement savings.

Additionally, younger generations mentioned challenges like student loan debt, saving for a home, weddings, and childcare costs. 

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Despite these hurdles, people of all ages expressed regret for not starting retirement planning sooner. On average, Gen Z wished they had started at 17 instead of 20, while Millennials wished they had started at 22 instead of 27.

Other reports highlight the insecurities that Millenials and Gen Z have when it comes to the subject of retirement.

The Fidelity findings follow a separate survey from WalletHub which indicated that Gen Z might be the least financially confident genera

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tion, FOX News reported last week. 

Gen Z will represent 27% of the workforce by the year 2025. But with more than one in four saying they lack confidence in their financial knowledge and skills, Gen Z is the least financially confident generation.

The lack of confidence shows in their investment strategies. The WalletHub survey found a substantial 57% of Gen Zers prefer savings accounts as their investment method. In contrast, 46% of baby boomers prefer stock investments. The choice of safer options reveals a careful approach to financial risks and a strong desire for stability among the younger generation.

WalletHub analyst Cassandra Happe comments, "Every generation except Gen Z agrees that the stock market is the best place to invest their money… understandable given how attractive high-yield savings accounts and CDs have been recently, but investing in stocks or mutual funds still is key for long-term growth."

FOX News contributed to this story.