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Gen Z favors vacation saving over retirement, JPMorgan Asset report finds
In a survey of more than 2,000 retirement-plan participants, JPMorgan Asset Management found many workers prioritize emergency cash, debt payoff, or vacations when forced to choose.
Nearly half of Gen Z workers aged 18 to 29 are prioritizing saving for vacations over retirement savings, according to a report from JPMorgan Asset Management, the outlet Yahoo Finance reports. The research also found that paying off student loans and building emergency funds rank above putting money away for retirement.
The firm said the survey reflected broader trade-offs across age groups, with more than half of workers placing higher priority on emergency savings than retirement when choosing between goals. Roughly 3 in 10 participants reported prioritizing education or general debt payoff, and a similar share said they save for vacations more than retirement.
JPMorgan Asset Management attributed the pattern to an “intention gap” plus real financial constraints, saying inflation and higher living costs can create a budget squeeze that spills from daily spending into retirement behavior. The report also highlighted that plan leakage remains high, with 1 in 4 participants taking a loan and/or early withdrawal, and another 19% planning to do so, Yahoo Finance notes.
According to the same reporting, the primary reasons people tap retirement savings are to cover unexpected expenses, followed by home purchases and reducing credit card debt, among other factors. Alyson Frost, head of retirement insights at JPMorgan Asset Management, said the survey results point to both deferred saving due to debt urgency and constraints that limit retirement contributions.