About 1 in 3 Gen Z workers putting off retirement savings

Dec. 5 (UPI) -- Gen Z workers have pushed off saving for retirement at a higher rate than other age groups in the last two years, a new survey finds.

The report from Bankrate states that 31% of Gen Z, born between 1996 and 2010, have not invested in their retirement savings in the last two years. The report comes from a survey into the saving habits of working Americans.

By comparison, an average of about 24% of American workers are not actively saving for retirement. About 23% of millennials are not saving.

The survey includes working aged people who work full time, part time or are temporarily unemployed. It was conducted through a phone survey which reached 2,312 people. Of those surveyed, 167 are considered part of Gen Z.

The consumer financial services company estimates that Gen Z is losing as much as $500,000 to more than $700,000 in a retirement account balance, assuming an 8% annual return. By starting to save at 22 years old, investing $5,000 per year, a worker would have a balance of about $1.3 million at 62 years old. If they wait until 32 to start investing they will have saved about $566,000.

While a large portion of Gen Z falls behind, 30% reported investing more into their retirement than they did last year. About 10% invested less.

There are several factors that play into putting aside less for retirement. Increased cost of living and inflation was the primary reason for 43% of respondents who made smaller contributions. For 24% it was a stagnant or reduced income. New expenses, keeping more cash on hand and market volatility were also considered as barriers.

The same survey revealed that about 55% of working-age Americans feel behind in their retirement savings. Baby boomers pace the generations of workers with 71% feeling behind.

Groups in the survey are divided into Gen Z (18-25 years old), millennials (26-41 years old), Gen X (42-57 years old) and baby boomers (58-76 years old).