Gen Z 401(k) balances lag older generations

New data reveals that Gen Z holds the lowest average 401(k) balance at $13,500 compared to older generations in 2025. However, this generation has started saving for retirement earlier than any other cohort, providing a significant long-term advantage. Despite lower current balances, their early start suggests a potentially stronger retirement outlook due to compounding growth over a longer period. This trend highlights differing savings behaviors and the impact of early financial planning.