The slice of U.S. adults born between 1997 and 2012, Gen Z has faced many macro changes in a short amount of adulthood. They’ve come out of pandemic lockdowns to confront a tricky job market and inflated prices, while some are collecting their first professional paychecks. Gen Z has an average net worth of $83,489, according to Empower Personal Dashboard™ August data.

Remember that building net worth is normally a gradual process that occurs over the course of a person’s lifetime. In these early stages, it is key to establish good financial habits and disciplines that can help build net worth over the rest of your life, such as setting aside a certain percentage of pay each month to save and invest.

Retirement Savings

Empower research shows Gen Z plans to retire soonest of all generations, at 54. Over the past three years, Gen Z participation in workplace retirement plans like 401(k)s has more than doubled. However, Empower data reveals that many may be leaving money on the table: only 62 percent are contributing enough to maximize their employer’s matching contributions — the lowest of all age cohorts.¹

According to Empower Personal Dashboard^TM data, Gen Zers have an average of $66,839 in 401(k) savings and an average of $76,568 in retirement savings (in employer-sponsored plans and individually controlled IRA savings and investment accounts).  

Gen Z Asset Allocation

It’s not surprising that in general as investors age, the size of their portfolio tends to grow, on average, until they reach retirement age.  On average, Gen Z has dedicated more of their asset allocation to cash (32%) than any other generation with a median amount of $36,685.52. On average, Gen Zers have 42% of their asset allocation in U.S. stocks, amounting to a median of $77,790.06.

Increasing retirement contributions by even 1% more could help Gen Z meet the high expectations they’ve set for retirement. Gen Z plans to retire the soonest of all generations, at age 54.