Gen Z Contributes 3.7% While Boomers Exceed 7% In Retirement Plans
JPM•J.P. Morgan’s 2025 Retirement by the Numbers report shows Gen Z workers contribute 3.7% of salary to employer plans, Millennials 5.0%, Gen X 6.0% and Boomers just over 7%. All age groups fall short of the 10%+ recommended rate, with higher earners only marginally ahead of lower earners.
1. 2025 Retirement by the Numbers Report
The latest annual report from J.P. Morgan analyzes defined contribution plans such as 401(k)s, 403(b)s and 457 plans to benchmark employee retirement savings behavior across generations.
2. Generational Contribution Rates
Gen Z workers average a 3.7% salary contribution rate to workplace plans, Millennials 5.0%, Gen X 6.0% and Baby Boomers just over 7%, all under the 10% threshold deemed necessary for long-term retirement readiness.
3. Income-Level Differences
Within each generation, top earners contribute only slightly more—around 6.5% to 7%—while lower earners fall between 4% and 6.5%, indicating income has a modest effect on savings rates.
4. Impact of Contribution Increases
A sustained annual increase of just 1% in contribution rate, especially early in a career, can significantly boost retirement outcomes by compounding balances over decades.
