Fidelity

Gen Z shifts savings from home down payments to 401(k)s and Roth IRAs

With homeownership feeling increasingly out of reach, many Gen Z adults are redirecting money toward retirement accounts instead of down payments. Pew Research found 89% of adults under 40 believe buying a home is harder for their generation than for their parents, while Fidelity data shows Gen Z retirement contributions rising 65% year-over-year, more than double millennials' growth rate. Young savers like 26-year-old Kana Cummings say they started investing early after pandemic-driven financial anxiety pushed them to build multiple savings buckets for the future.