Gen Z is showing responsible financial habits by investing for retirement, with nearly half projected to maintain their current standard of living in retirement, ahead of baby boomers and millennials, according to a Vanguard study. Expanded Defined Contribution plans and high participation rates are helping younger generations build financial security.

Access to retirement funds isn’t universal, with 42% of workers lacking access, particularly in lower-wage and part-time jobs. Despite Gen Z’s success in saving for retirement, debt repayments from student loans, auto loans, and credit card debt remain a challenge. Financial wellness tools are crucial for lasting retirement security, says a Vanguard investment strategist.

While Gen Z focuses on retirement savings, baby boomers, holding over half of the nation’s wealth, are not all prepared to retire comfortably. Many may face shortfalls in income replacement during retirement, needing to consider options like tapping home equity, reducing spending, or working longer. The median boomer may fall short by about $9,000 in retirement expenses.

Read more at Yahoo Finance: Despite flak for doom-spending their money, Gen Z may be more prepared for retirement than baby boomers, research reveals