Retirement contingency plans: What Gen Z can start implementing now

Those who don’t learn from history are bound to repeat it-and that’s especially true when it comes to retirement savings. If Gen Z ignores the mistakes made by Baby Boomers and Gen Xers, they could be in for a major financial wake-up call. Here’s how to get ahead of it.

With Baby Boomers (born 1946-1964) well into retirement and many Gen Xers starting to wind down their careers, some hard truths are emerging. While plenty saved diligently to enjoy their golden years, others received a cold reality check.

Whether it’s a market crash, soaring inflation that erodes your savings’ value, or a promising investment that tanks overnight, even solid plans can be derailed. But you can protect yourself-starting now.

So, what can Gen Z actually do today?

If you’re Gen Y or Gen Z, retirement might feel like a distant galaxy. But the sooner you act, the better your odds of enjoying a financially secure future. Here are five practical steps you can start today:

1. Start a Skill-Based Side Hustle

Whether it’s content creation, coding, graphic design, or photography, a monetizable skill can grow into both a steady income stream and a passion-driven hobby later in life.

2. Rethink Your Living Situation

Big-city living may look glamorous, but the costs add up. Explore options abroad or consider relocating to a smaller, more affordable city to stretch your budget further.

3. Embrace the Idea of Semi-Retirement

Full retirement may not be in the cards for everyone. Consider taking career breaks or working seasonally in roles you enjoy. These “mini-retirements” can add purpose and extra income later in life.

4. Diversify Your Investments

You’ve heard it before-and it’s still true. Don’t put all your eggs in one basket. Even the most “reliable” investments can falter. Spread your assets across industries, markets, and risk levels.

5. Pay Off High-Interest Debt ASAP

Every dollar spent on interest is one less for your future. Knock out your high-interest debt early, and redirect those funds into your retirement accounts. Your future self will be glad you did.

The bottom line

There’s no surefire formula for a flawless retirement, but doing nothing is the fastest road to regret. Taking even a few of these steps can significantly boost your financial well-being in the long run.

And if you’re not sure where to start, don’t hesitate to talk to a financial advisor who specializes in retirement planning. The earlier you plan, the more freedom you’ll have down the road.