Gen Z Investors Chase $2 Million Retirements as Lifetime Health Costs Rise 7.5%
Updated
Updated · Bloomberg · Jul 27
Gen Z Investors Chase $2 Million Retirements as Lifetime Health Costs Rise 7.5%
1 articles · Updated · Bloomberg · Jul 27
Summary
$100,000 invested at age 25 can grow to more than $2 million by 65 at an 8% annual return, versus $466,000 for a 45-year-old over 20 years.
Twentysomething “retirement-maxxers” are pursuing early financial independence by living with roommates, cooking at home, driving older cars and funneling savings into low-cost index funds.
That discipline is unfolding in a tougher backdrop: nearly 16% of Gen Z workers are piecing together multiple income streams as entry-level jobs shrink, while some still struggle with credit-card debt.
Fidelity estimates a 65-year-old retiring today will spend $185,500 on lifetime health care, up 7.5% from last year and excluding long-term care, adding urgency to early saving.