Meet the Gen Zers Who Are ‘Retirement Maxxing’

Natalie Baddour, a 26-year-old resident of Fort Lauderdale, is part of a growing trend among Gen Zers who are focused on building a secure financial future. With $300,000 saved up for retirement, Natalie is one of the many young people who are ‘retirement maxxing’.

According to a Bloomberg story, Natalie’s approach to saving is not unique. Many Gen Zers are beginning to save and invest in retirement accounts as early as 19 years of age, more than a decade earlier than many Gen X or Boomers did. By 2024, Gen Zers had three times as much invested in 401(k)s and other retirement accounts as Gen Xers at the same age.

But what drives these young people to prioritize saving for retirement? For Natalie, it’s about getting ahead while she’s young. ‘It was always really important for me to try to get ahead while I was young,’ she told Bloomberg. ‘I always saw it as the key to getting to have the life that I want.’

How Gen Zers Are Saving for Retirement

So, how are Gen Zers like Natalie saving for retirement? According to a 2026 Charles Schwab survey, teens as young as 13 are interested in investing. But for those who are already saving, it’s often a matter of discipline and determination.

Natalie, for example, saves 50% of every paycheck she gets from her job at Chewy Inc. She also keeps herself on a tight leash with a monthly budget. She splits rent with a roomie, eats at home most of the time, and drives a car that’s almost as old as she is.

But Natalie’s not alone in her approach to saving. Her fellow Gen Zer, Grace Colvin, 26, is an equally conscientious saver who has socked away $100,000 to date. The Chicago management consultant told Bloomberg that building greater financial independence is as much a cushion for her career as her retirement.

‘I might not leave my job necessarily, but I’m going to say no to things that I simply don’t want to do,’ she said. ‘You’re not as tempted by the ‘golden handcuffs’ anymore.’

For Gen Zers like Natalie and Grace, saving for retirement is not just about securing their financial future, but also about gaining the freedom to pursue their goals and aspirations.

But while some Gen Zers are ‘retirement maxxing,’ others are struggling with debt and financial insecurity. According to a CNBC article, 42% of Gen Zers who built up retirement accounts dipped into them to cover their debt.

So, what can Gen Zers do to avoid raiding their nest eggs? Financial experts suggest that setting up a 401(k) should be just one of several steps toward financial security, including:

• Gradually building up an emergency fund to cover sudden financial crises, with up to six months’ worth of expenses
• Paying off high-interest debt, particularly credit-card debt — as high interest wipes out savings efforts
• Creating a ‘sinking fund’ for expected expenses, like holidays or home maintenance
• Bolstering long-term retirement accounts — adding to 401(k)s and funding a Roth IRA
• Investing in life goals like saving for a down payment on a home

By taking these steps, Gen Zers can secure their financial future and achieve their goals, just like Natalie and Grace.