Retirement goals are influenced by numerous factors, ranging from your age and income to your lifestyle preferences. Although certain common goals apply to nearly everyone — including the need to start saving money as early as possible — different generations tend to have different retirement goals.
A recent survey of 1,013 U.S. adults conducted by Empower found that most Americans put a high priority on basic financial security in retirement, regardless of generation. More than two-thirds of respondents (68%) value the ability to pay their bills on time when they are retired. A slightly lower percentage (63%) want to live debt-free, while more than half (55%) want to own a home outright.
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There were some key generational differences, however. Here are five ways Gen Xers, millennials and Gen Zers differ over retirement goals.
Retirement Savings
In the Empower survey, nearly half (46%) of Gen Z respondents said they are most likely to feel happiness in retirement by achieving a savings goal — the highest percentage of any generation.
That aligns with research conducted by others. Saving money is the No. 1 financial goal of Gen Z, according to a study cited by the National Association of Plan Advisors. That same study found that two-thirds of Gen Z workers say that participating in employer-provided retirement plans is “very important.”
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High Quality of Life
Millennials are the most likely to prioritize quality of life in retirement, with more than half (51%) of those surveyed by Empower saying that a high quality of life is important.
A similar percentage of millennials (56%) said happiness in retirement comes from homeownership — more than any other generation.
Leaving an Inheritance
Leaving an inheritance is more important to Gen X than other generations. More than 4 in 10 Gen Xers (42%) said happiness in retirement comes from leaving behind an inheritance for their children, according to the Empower survey.
Low Cost of Living
Cost of living is another area that Gen Z puts a higher priority on than other generations. According to the Empower survey, nearly half (46%) of Gen Zers believe that low living costs in retirement are important.
Travel
Among all respondents in the Empower survey, 42% said happiness in retirement means traveling the world, while 16% said they could see themselves retiring in another country. Along generational lines, Gen Zers put the highest priority on travel, with 44% setting a goal for a travel fund in retirement.
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This article originally appeared on GOBankingRates.com: 5 Ways Gen X, Millennials and Gen Z Differ Over Retirement Goals
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