Here’s the Average Age Americans Start Saving for Retirement. How Do You Compare?

If you ask older American employees about their retirement strategy, the vast majority will tell you they wish they’d done one thing differently: started sooner.

According to a recent report from Nationwide, 85% of private-sector employees aged 45 and older regret not contributing to their retirement plans earlier in their careers. Furthermore, 88% wish they’d better understood the benefits of maxing out those contributions from the start.

This data comes from a survey conducted by Edelman DxI on behalf of Nationwide. Researchers polled 2,200 employed U.S. adults aged 22 and older who have access to employer-sponsored retirement plans to gauge how different generations approach their financial future.

The numbers show a stark reality for older workers. On average, employees currently over the age of 45 didn’t start contributing to their workplace plans until age 35. That’s a significant delay, costing them a decade of potential growth.

The 11-year advantage

Fortunately, younger workers seem to be learning from the struggles of previous generations. The survey indicates that Gen Z and millennial workers are hitting the ground running.

Employees aged 22 to 34 reported starting their workplace plan contributions at age 24, on average. That gives them an 11-year head start compared to their older colleagues. By entering the market more than a decade earlier, these younger investors can leverage time to build wealth with less strain on their monthly budgets.

They’re also keeping a closer eye on their money. Nationwide found that 53% of workers in the 22-to-34 age bracket check their retirement balances at least once a week, compared to just 38% of those over 45.

New tools and new anxieties

How younger workers learn about money is shifting too, when compared with older respondents. While financial professionals and family members remain common sources of advice, younger savers are turning to technology.

Half of the participants aged 22 to 34 admitted to using generative AI tools like ChatGPT for financial guidance. Social media plays a massive role as well, with 42% consulting TikTok and 36% looking to Instagram for advice.

Older generations, by contrast, overwhelmingly stick to human resources departments and financial advisors.

However, this constant connection to information might have a downside. The report highlights that younger workers are more prone to emotional decision-making. About 24% of the younger group believe the economy will tank in the next six months, and they’re more likely to admit that fear or optimism drives their investment choices.

There’s also a knowledge gap to address. Despite their early start, less than half of private plan participants fully grasp how compound interest works. While the enthusiasm is there, the fundamentals may still need some work.

The takeaway is clear: Older workers are looking back with regret, while younger workers are looking forward with action. If the youngest generation can manage their anxiety and stick to their strategy, that 11-year head start could make all the difference.

In a summary of the findings, Cathy Marasco, head of Protected Retirement at Nationwide, says:

“Younger savers are showing that early engagement and proactive planning can create confidence and resilience, while older generations offer valuable perspective on the risks of waiting to take action.

As we think about resolving to create better financial habits in the year ahead, these insights give all of us a clearer roadmap for building a stronger financial future.”

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