Gen Z 401(k) Averages: $13,500 vs. $6,899 at 23; Start Early with Employer Matches

Gen Zers today average $13,500 in 401(k) balances, lower than later generations but reflective of earlier retirement planning starts. Vanguard data shows 25-year-olds average $6,899, with a median of $1,948; middle-income Gen Zers have a median of $43,000. Northwestern Mutual reports Gen Zers begin working with financial advisors at 23 on average. Start early to compound gains: a 20-year-old investing $300/month at 7% would reach ~$1.03M by age 65; 30-year-olds need ~$620/month; 40-year-olds ~$1,360/month. If no 401(k), open an IRA and automate contributions. Prioritize employer 401(k) matches, which are free money, and manage high-interest debt while building momentum.