Wealth Watch 2025 Outlook: Financial tips for each generation.

New York Life | January 21, 2025

The new year is an ideal time to reflect on financial outcomes of the previous year, reestablish goals, and set a strategy for the year ahead. While everyone can benefit from the basics (for example, we all need some type of budget, regardless of goals or income), our Wealth Watch 2025 outlook survey found that each generation approaches their finances a little differently. The unique attitudes and behaviors of the generations can provide the basis for an effective, tailored financial strategy that addresses both short- and long-term goals in the year ahead.

How should members of the various generations approach their 2025 financial planning, according to New York Life Wealth Watch research?

Gen Z: Take ambitious action to stay on track with goals. Gen Z reported the most ambitious savings goals for 2025, aiming to save an average of $22,374.36. They also aim to retire the earliest, at 60, five-to-six years earlier than other generations. To reach these ambitious goals, Gen Z must take ambitious action, but also remain grounded in reality, as their newness to the workforce among ongoing economic challenges like inflation may stunt their savings goals in the short-term. Gen Z must remember that patience is key, and to support both short-and long-term goals with available resources — whether that be workplace benefits, family relationships with financial professionals, or free, online resources — to work steadily toward securing their financial futures..

Millennials: Establish a mature financial strategy to match current life stage. Millennials are officially all grown up. With their impressive 2024 savings, this generation has effectively busted the “avocado toast myth” (the widely perpetuated idea that frivolous spending on things like brunch derails Millennials’ long-term financial goals). Millennials reported saving an average of $12,004.87 in 2024, nearly double the national average (Gen Xers came in second at $7,463.17). As the oldest Millennials turn 44 in 2025, they enter their peak earning years. However, for many, these are also their peak expense years as they balance childcare, eldercare, self-care, and long-term goals. Millennials serious about taking control of their financial future should seek the guidance of a trusted financial professional to ensure they are optimizing their strategies now while setting themselves up for future success at this critical juncture.

Gen X: Make the most of remaining working years. Gen X is on the cusp of the traditional retirement age, as the oldest members of this generation turn 60 this year. But they report the highest credit card debt ($10,140.99 on average) and lowest financial confidence. Gen X can use the guidance of a trusted financial professional to create a realistic retirement plan, whether that be the traditional path of stopping work completely, or creating a unique plan that includes part-time work, which is increasing in popularity. Gen X can also take advantage of benefits like catch-up 401(k) contributions, and should speak to their workplace about other benefits they may not be aware of. Members of this generation still have time on their side, and they can make the most of it now.

Baby Boomers: Protect your life’s work. Our New York Life Wealth Watch survey found that Baby Boomers broadly favor cash when it comes to saving: 67% report using a checking account to save, and 49% use a cash savings account (tied for third at 20% each are 401(k)/403(b), traditional IRAs, and life insurance). What happens to that money when they pass? Baby Boomers must do the hard work of clearly identifying, documenting, and communicating their estate planning wishes with family and financial professionals. These conversations can be difficult to have, but they only get harder with age, and there will come a point where it is too late to ensure that plans are accurately carried out by loved ones. Baby Boomers have the opportunity to ensure a smooth transfer of assets in the future. The guidance of a financial professional can ease the emotional and logistical burdens of these conversations.

“Americans across generations are faced with ongoing change and uncertainty, which can make planning challenging,” said Jessica Ruggles, corporate vice president of Financial Wellness at New York Life. “Our data has shown people who work with financial professionals tend to feel more secure and are more likely to have a financial strategy in place, inclusive of retirement savings and debt management. The new year is a great opportunity to adopt and adjust a financial strategy to adequately support unique needs.”

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