Level Up Your Future: Gen Z & Millennials Are Crushing Retirement Savings—Here’s How to Go from Great to Extraordinary

Forget the tired stereotypes. A new report on saving habits reveals a powerful truth: Gen Z and millennials are quietly becoming retirement savings powerhouses, putting their elders’ early efforts to shame.

The average young saver today is already making savvy moves. They’re contributing a solid 7% of their salary to retirement, using auto-escalation to painlessly increase that amount each year, and wisely using target-date funds to keep investing simple and effective. This “set it and forget it” strategy is a fantastic foundation and a massive step in the right direction.

You’re already on the path to success. But in the world of finance, “good” can always become “great.” With just a few small adjustments, you can transform your solid foundation into an unshakeable fortress of wealth.

Think of it not as fixing a problem, but as unlocking a new level of financial freedom. Here are five ways to supercharge your already impressive nest egg.

1. Claim Your Free Money: Max Out the Match

Your company’s 401(k) match is the closest thing to a guaranteed 100% return on your investment. If your employer matches up to 4% of your salary, and you’re only contributing 3%, you are walking away from free money. Your first financial mission: Contribute enough to get every single penny of your employer’s match. No exceptions.

2. Find Your 1% Upgrade

You’re already at 7%, which is fantastic. Now, challenge yourself. Can you increase your contribution by just 1%? You’ll barely notice it in your paycheck, but over decades, that single percentage point will compound into tens of thousands of dollars. The best part? Most plans let you set up “auto-escalation” to do this for you every year, making your growth effortless.

3. Look Beyond the Default: Know Your Roth

Target-date funds are brilliant for their simplicity. But take one step further and ask: are you using a Roth or a Traditional 401(k)?

• Traditional: You get a tax break now.

• Roth: You pay taxes now, but all your withdrawals in retirement are 100% tax-free.
  For many young earners, paying taxes now while in a lower tax bracket can save a fortune later when your investments have grown exponentially. See if your employer offers a Roth 401(k)—it’s a powerful tool for a tax-free future.

4. Unlock the Secret Weapon: The HSA

If you have a high-deductible health plan, you may have access to a Health Savings Account (HSA). This is the ultimate retirement tool, offering a triple tax advantage: your contributions are tax-deductible, the money grows tax-free, and your withdrawals for medical expenses are also tax-free. It’s a health fund and a stealth retirement account rolled into one.

5. Switch from “Forget It” to “Check On It”

“Set it and forget it” is about avoiding panicked, emotional decisions—not total neglect. Schedule a simple financial check-in once a year. During this 30-minute meeting with yourself, ask:

• Are the fees on my funds still low?

• Am I still on track with my goals?

• Do I want to increase my contribution now that I’ve gotten a raise?

You’re part of a generation that is rewriting the rules of financial success. You’ve built the momentum; now it’s time to hit the accelerator and turn a comfortable retirement into an exceptional one.