Beyond 401(k)s: How Millennials Are Ditching Gen X Retirement Strategies. Will It Pay Off?

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published 12 June 2025

“Listen to your elders” doesn’t always ring true, at least not when you ask millennials about retirement planning.

Right or wrong, good or bad, millennials, or those born between 1981 and 1996, have a very different approach to saving for retirement than the generation before them.

From how they work to how they save, they’re eschewing Gen X and forging their own path.

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That independence is partly a byproduct of the environment in which they came of age. It’s also shaped by the tools and technology available to them. But one thing is certain: both generations share the same worry: whether they’ll have enough money to retire comfortably.

Among Gen Xers, 63% worry they’ll outlive their retirement savings. For millennials, it’s 56%, according to research from BlackRock.

That’s where the similarities end. Beyond that, millennials approach retirement differently than Gen Xers in these surprising ways.

1. They started saving earlier

It's pretty much established by now that the sooner you start saving for retirement, the better off you’ll be when you decide to retire. And if you save in a tax-advantaged company-sponsored retirement savings plan like a 401(k), it's even better.

For Gen X, that wasn’t a given; for millennials, it was. As a result, millennials began saving earlier than their older counterparts. Add automatic 401(k) enrollment to the mix, and it’s easy to see why Gen X is playing catch-up in terms of retirement savings.

At 35 or 40, millennials are ahead of where Gen Xers were in terms of saving for retirement at the same age, says Bryan Bibbo, President and CFO of JL Smith Holistic Wealth Management.

2. They are less risk-averse

From cryptocurrency to ETFs, a lot has changed in terms of how retirement savers can invest their money, and millennials aren’t afraid to test the waters.

After all, millennials became adults during a more than ten-year bull run in the stock markets and are inclined to believe everything keeps going up, which makes them more willing to take risks.

Gen X, on the other hand, lived through the Dotcom bust and the Great Recession of 2008 and 2009, and as a result, are much more skeptical and conservative when it comes to investing.

“Millennials are willing to take a lot more risk than Generation X,” says Stephanie Temporiti, a wealth advisor at Hightower Wealth Advisors.

3. They value advice

Gen Xers are an independent group. After all, they were the latchkey kids and the ones sent out to play unsupervised until dark. They didn’t have helicopter parents managing their every move. As a result, they are more apt to go it alone instead of seeking the advice of financial advisers.

Millennials are different. “They tend to work with financial advisers at a young age compared to Gen X, who held off on that,” says Bibbo. “Gen X is a little ashamed that they are not feeling on track. Millennials say I trust you, you're the professional, get me on track.”

4. They are more tech-savvy

Millennials are the first generation to grow up with mobile devices and, by default, are more tech savvy than Gen X. That has seeped into everything, including the way they invest and save for retirement, whether it’s using robo advisors, investment apps, or online trading platforms.

They are also taking advantage of the wealth of financial information available over the internet to become more informed investors, something that wasn’t as accessible when Gen X was younger.

“Millennials don’t seem skeptical about financial tools versus some of the older Gen Xers,” says Bill Van Sant, managing director at Girard, a Univest Wealth Division.

5. They don’t want to wait to pursue happiness

Work hard and enjoy yourself when you finally retire is the mantra of many generations, but not millennials. They’ve seen what that gets you and, as a result, aren’t willing to wait to pursue their happiness, even if it's at the expense of their retirement savings.

“They want to find fulfilling work, make a good living, and enjoy their life as much as they can,” says Temporiti. “They don’t want to wait until retirement to do all the things they want to do.” Gen X doesn’t subscribe to that and tends to be a little more frugal than millennials.

The jury is still out

Without a doubt, millennials and Gen X approach retirement investing and saving differently. The jury is still out on which generation has it right. Will millennials’ penchant for risk blow up in their faces? Will Gen Xers regret their reluctance to embrace technology?

While the generations may not agree on how they get there, the important takeaway is that both recognize the value of saving for retirement.

Donna Fuscaldo is the retirement writer at Kiplinger.com. A writer and editor focused on retirement savings, planning, travel and lifestyle, Donna brings over two decades of experience working with publications including AARP, The Wall Street Journal, Forbes, Investopedia and HerMoney.