In today's workforce, the expectations and approaches toward work-life balance and retirement can vary significantly across generations. From Gen Z employees just beginning their careers to Baby Boomers navigating their retirement years, each generation brings its own perspective.
In addition, the concept of retirement continues to evolve, shaped by economic conditions, workplace expectations, and personal values. While older generations have traditionally viewed retirement as a life stage at the end of a long career, younger generations are redefining the concept.
Gen Z, born from 1997 to 2012, are the newest entrants into the workforce. Having grown up in the digital age, they often prioritize flexibility, remote work, mental health, and work-life balance more than previous generations, including time to integrate personal interests into their daily schedules.
Having entered the workforce during or after the pandemic, they may have a different perspective on career longevity and working continuously for decades. Instead, this cohort may also choose to take sabbaticals, travel, or pursue side projects between jobs. This “micro-retirement” concept involves taking breaks from work throughout a career rather than waiting until traditional retirement age.
Millennials, born between 1981 and 1996, entered the job market during or after the Great Recession and have faced significant financial challenges, including student debt. Many had to delay major life milestones, including homeownership and starting families, due to financial instability.
Work-life balance is also a priority for Millennials and this cohort has embraced gig work, entrepreneurship, and multiple income streams to create flexibility while still planning for long-term financial stability. A growing number of millennials also subscribe to the FIRE (Financial Independence, Retire Early) movement, aggressively saving and investing to achieve financial freedom as early as possible.
Often called the "sandwich generation," many Gen Xers, born from 1965 to 1980, are balancing careers with caring for parents and children. While they may still value the traditional in-office experience, they may also seek flexible work arrangements to manage personal responsibilities.
Unlike Millennials and Gen Z, who often switch jobs frequently, Gen X typically values job stability. Catching up on retirement savings, managing expenses related to college tuition for their children as well as healthcare costs for their parents may be challenges.
Baby Boomers, born from 1946 to 1964, have a different outlook. Working for decades before enjoying a comfortable retirement was their typical expectation. However, rising living costs and financial instability have led many boomers to delay retirement or even re-enter the workforce, taking part-time or flexible jobs to balance financial stability with leisure.
The features offered by employer-sponsored retirement plans, such as 401(k) plans, can play a crucial role in helping employees across all these generations. For example consider the following:
While each generation brings unique perspectives on work and retirement, employer-sponsored retirement plans can help retirement plan participants across multiple generations build financial security. Contact your Sentinel representative for help with any questions you may have.
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