New Year, New Savings: Young Savers are Avoiding the Mistakes Older Savers Regret – You Can Too
January 13, 2026 by Nationwide
COLUMBUS, Ohio, Jan. 6, 2026 /PRNewswire/ — As 2026 begins, a recent survey from the Nationwide Retirement Institute (NRI) reveals a surprising generational divide in retirement planning. Younger workers – Gen Z and Millennials – are starting to save earlier, engaging more actively with their workplace retirement plans, and planning for market volatility, while many Gen X and Boomers report wishing they had taken similar steps sooner.
“Our research highlights how different generations approach retirement – and what we can learn from them,” said Cathy Marasco, head of Protected Retirement at Nationwide. “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.”
Young savers are practicing smart retirement behaviors
On average, Gen Z and Millennial savers started contributing to their workplace retirement plans at age 23 and 28 respectively – nearly a decade earlier than Gen X (34) and Boomers (40). They’re also more engaged and protection focused: checking balances weekly, increasing contributions annually, and planning ahead for market volatility. Roughly 7 in 10 younger savers say they have a strategy to safeguard their savings before retirement, compared to just 55% of Gen X and 44% of Boomers.
Millennials, in particular, are leaning more on resources like their company’s HR team, retirement plan providers, and financial advisors to guide their decisions. And both Gen Z and Millennials show greater familiarity with investment solutions that provide downside protection – and are more likely to say they’d use them.
Ultimately, these habits are paying off. Eight in 10 younger savers feel optimistic about their retirement plans. Nearly half also feel confident about the savings they’ve accumulated – compared with just a third of Gen X and a quarter of Boomers.
Older savers share regrets
On the flip side, older savers were candid about what they wish they’d done differently. More than 80% of Gen X and Boomers regret not starting to save or participating in their employer-sponsored retirement plan earlier. Over 8 in 10 also wish they’d focused earlier on strategies to protect their savings from market volatility or convert assets into sustainable income in retirement. These regrets are compounded by persistent knowledge gaps, including:
- Over three-quarters of older savers wish they understood the power of compounding interest and the benefits of maximizing contributions at a younger age
- 54% of Gen X and 39% of Boomers still misunderstand how compounding interest works
- More than half believe their 401(k) will provide predictable monthly income like a paycheck, setting unrealistic retirement expectations
These missed opportunities have real consequences. One in five Gen X and Boomers feel they’re on the wrong track for retirement and almost 1 in 3 now expect to retire later than planned. And economic uncertainty is adding pressure, with many reporting increased anxiety about their retirement savings over the past year.
Starting early pays dividends
Analysis of NRI’s research by The American College of Financial Services highlights just how powerful an early start can be. Among those who began saving for retirement by age 25, three-quarters feel confident or cautiously optimistic about their future, compared to just 46% of those who started later – a 30-point gap. Even beyond that cutoff, the trend holds: optimistic savers began at roughly age 30 or younger, while those who feel anxious or pessimistic started around age 32 or older.
“The lesson is simple: don’t wait for the perfect moment or the perfect amount to start saving,” said Eric Ludwig, PhD, CFP®, Director of the Center for Retirement Income at The American College. “Building the habit early – even with modest contributions – sets the foundation for decades of confidence and better retirement readiness.”
Kick off 2026 with smarter saving
With the new year underway, it’s an ideal moment for retirement savers to take stock of where they stand and where they want to be. To start 2026 on the right path, consider some simple actions that can help improve your retirement outlook:
- Start now – or increase what you’re already saving. Every day you wait is a missed opportunity for growth. If you’re already contributing, consider a small increase. Even a 1% bump can make a meaningful difference over time.
- Contribute enough to earn your full employer match. Roughly 20% of savers across all generations say they either don’t contribute enough to receive the full match or aren’t sure if they do, leaving money on the table. If your budget allows, consider maximizing contributions to capture even more growth potential.
- Check in with your retirement plan provider or financial advisor. A quick review at the start of the year can help you understand if your current allocation and risk level still align with your goals, and whether rebalancing may be appropriate.
- Prepare for market changes and long-term income. Take time to understand how your current savings will eventually convert into income in retirement and explore plan options that provide protection or guaranteed income – features that can help stabilize your strategy through market shifts.
“A new year is a natural point to reset your financial habits,” said Marasco. “Workplace retirement plans are evolving to include many of the tools and protections needed to build long-term security – like income solutions, portfolio guidance and downside protection – making it easier for savers to take the next step.”
It’s important for today’s savers to have the tools they need to be confident and thrive in retirement. Learn about Nationwide’s Protected Retirement solutions or view the full survey findings.
Methodology
Edelman Data and Intelligence (DXI) conducted a national online 20-minute survey of n=2,200 plan participants, on behalf of Nationwide from July 30th – August 13th, 2025.
As a member in good standing with The Insights Association as well as ESOMAR, Edelman Data and Intelligence conducts all research in accordance with local, national and international laws as well as in line with all Market Research Standards and Guidelines.
About Nationwide
Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the United States. Nationwide is rated A+ by both A.M. Best and Standard & Poor’s. An industry leader in driving customer-focused innovation, Nationwide provides a full range of insurance and financial services products including auto business, homeowners, farm, and life insurance; public and private sector retirement plans, annuities, mutual funds, and ETFs; excess & surplus, specialty, and surety; and pet, motorcycle, and boat insurance. For more information, visit www.nationwide.com. Follow the firm on Facebook and Twitter.
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