Gen Z Is Thinking of Retirement Too Early and All Wrong
More than half the cohort claims to be part of the FIRE movement, which pushes frugality as a means to quickly exit the workforce.
When to retire?
Photographer: JOHN MACDOUGALL/AFPThere’s a beautiful naivety to spending a couple of years in the workforce and deciding it’s not for you and it’s time to work toward opting out. Gen Z is the latest generation to stumble across the FIRE movement, or Financial Independence Retire Early. More than half already claim membership despite their limited years in the workforce. Devotees of the movement typically boast high savings and investing rates combined with a zealous dedication to frugality. And therein lies the problem.
About 37% of the Gen Zers who say they’re part of the FIRE movement have nothing saved for retirement, according to a recent survey by consumer technology platform Credit Karma. In fairness, the eldest in Gen Z are 27 and the survey included those 18 and older, so it’s possible that some respondents are still in college and claiming a movement before even joining the workforce and starting a retirement plan.