Young Coloradans are prepared for retirement

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It’s a rite of passage for every generation to receive their share of head shakes and side eyes from the generations that came before them. But for everything that has been said about Gen Z, experts agree that America’s youngest workers are more financially savvy than their parents.

Gen Z certainly benefits from instant access to information and greater choice, while broader economic uncertainty — high inflation and soaring home prices — has made them keenly aware of the importance of taking control of their finances.

For example, as young people start their careers, Gen Z is taking advantage of retirement plans offered by their employers at much higher rates than older generations, especially 401(k) plans that include an employer match and tax incentives. Up to a certain point, every generation is at the mercy of the world that was created before them, financial or otherwise. So it shouldn’t be surprising that their generation has strongly gravitated to retirement savings and financial literacy in general — it’s something within their control.

In a not-so-shocking development, some politicians think they know better, ignoring these trends, and are attempting to implement a top-down approach, the consequences of which they won’t have to live with. Sen. Bernie Sanders, D-VT, for example, is seeking to strip 401(k)s of their tax advantages or implement a government-controlled plan, believing the solution to helping more Americans retire comfortably is to eliminate a product we are using.

Even more disappointing is that our own Sen. John Hickenlooper is a co-sponsor on a bill that would mandate Thrift Savings Plans-like plans administered by the federal government for all. While his goal is admirable, his approach is all wrong and will be costly for Americans, and ultimately make the road to retirement a lot bumpier. This is all at a time when Congress should be focused on addressing broader economic issues.

We’re increasingly forced to make tough decisions between short-term and long-term financial security. High inflation has been brutal on everyday living, with higher costs making every trip to the supermarket a painful experience. Skyrocketing home prices and interest rates mean buying a home requires a much larger income than it did 60 years ago. Like other generations, Gen Z faces challenges with our retirement goals, but thanks to the 401(k), the goal of retirement is still very much achievable.

The numbers speak for themselves. Handshake found that as the Class of 2024 looks for their first job, 65% of college seniors said they would not accept a job offer from an employer that did not have an employee-sponsored 401(k) or similar retirement benefit. Likewise, Vanguard found that workers aged 18–24 were 32% more likely to invest in their workplace retirement program than other generations at their same age. Studies have also found that Gen Z has three times the assets that their Gen X counterparts did at the same age, even after adjusting for inflation. Plus, 401(k)s can help create generational wealth in a way a traditional pension plan, or even Social Security, can’t because funds can be passed down to the next generation. We cannot throw away those benefits without addressing the real issues and broader economic conditions that hinder retirement saving.

For Gen Z, saving for retirement means taking control of their future and redefining their own American dream. As many politicians capitalize on fears of a retirement crisis to fuel partisan pushes to discredit the 401(k) system, it’s vital that our senators, Michael Bennet and John Hickenlooper, recognize the need to protect 401(k)s as a tried and true system that will deliver for future generations.

I urge Bennet and Hickenlooper to protect young Coloradans as they work towards a secure financial future. Gen Z has made clear they are ready and willing to do the work to properly save. It’s on Congress to provide them the tools to do so. By reducing inflation and rejecting calls to overhaul the 401(k) system, we can ensure a prosperous retirement will be in reach for generations to come.