Goal Oriented: Financial confidence is high, and half of Americans have a clear plan

Retirement is a journey, and every milestone counts: Americans across generations are making progress toward retirement, from building emergency funds to paying off debt. While each generation faces unique financial challenges, many share a strong sense of optimism about their financial futures.

Key takeaways

• Optimism prevails: 60% of Americans feel confident about reaching their financial goals, with Millennials leading at 63%.
• Money moves: Nearly half of Americans (47%) have successfully paid off their debts, 40% have achieved homeownership, 39% have established an emergency fund, and 32% have started securing retirement savings.
• Retirement reality check: Americans aim to retire at 62 but expect they may work until 70. Rising living costs (70%), insufficient savings (50%), inflation (48%), and unexpected financial emergencies (39%) are among the common factors contributing to adjusted timelines.
• Through the ages: Americans aim to purchase a home by 38, build an emergency fund by 40, pay off debt by 42, achieve financial independence by 46, and accumulate retirement funds by 47.
• Planning for success: Nearly half of Americans (49%) have a clear financial plan to meet their money goals.

Progressing toward financial goals

Unretired Americans are making headway on key financial goals, with nearly half (47%) having paid off debt and 40% achieving homeownership. Many are also building a financial cushion — 39% have established an emergency fund, while 32% have started securing retirement savings.

For those still working toward these milestones, optimism is high. Sixty percent believe they will reach their goals, with Millennials (63%) being the most confident. On average, Americans aim to accomplish their financial milestones at specific ages: purchasing a home by 38, building an emergency fund by 40, paying off debt by 42, achieving financial independence by 46, and securing retirement funds by 47.

Nearly half of Americans (49%) have a clear financial plan to meet these targets, including 49% of Millennials and 50% of Gen Z. Still, 32% recognize they need a structured plan, particularly among Gen X (37%).

Planning for retirement

Some 73% believe they'll retire at the age they envision, although 27% still express concerns about timing. This sentiment varies slightly by generation, with Gen Z (28%) and Millennials (27%) most likely to feel this uncertainty, followed by Gen X (26%) and Baby Boomers (11%).

To bolster their retirement plans, most Americans (67%) are focusing on reducing or eliminating debt, and many (63%) are supplementing their income with multiple jobs. Among younger generations, 68% of Gen Zers have taken on side hustles to help save for retirement, while 24% of both Millennials and Gen Zers are considering job changes for higher salaries.

Almost half of Americans (48%) are confident they'll maintain their current lifestyle in retirement, with Gen Z (51%) being the most optimistic. Setting realistic goals and making intentional financial decisions — like minimizing debt, pursuing additional income, and securing higher wages — can empower Americans to retire on their own terms and enjoy the lifestyle they envision.

Navigating retirement setbacks

Most Americans (54%) are on track to retire as planned, though some feel they have to delay an average of 6 to 8 years due to economic factors like rising living costs (70%), insufficient savings (50%), inflation (48%), and unexpected financial emergencies (39%). On average, Americans are targeting an average retirement age of 62 but anticipate they may work until around 70.

For those concerned about the potential impact of job instability, 49% are mindful of how an unexpected layoff might affect their retirement plans. This concern is shared across generations, with Gen X (52%), Millennials (48%), Gen Z (47%), and Baby Boomers (26%) reporting varying degrees of worry.

Building an emergency savings fund, regularly reviewing your retirement plan, and adjusting your budget as needed can help you stay on track. Seeking advice from a financial planner can also offer extra security and flexibility to navigate unexpected challenges.

Methodology

Empower commissioned a survey of 1,006 Americans in September 2024.