By 2065, it’s estimated that American’s will need $3.5 million in order to retire.

What if I told you that by 2065, the average American will need $3.5 million to retire?

It’s a number that feels almost absurd—like something plucked from a dystopian novel rather than a real financial projection. And yet, this is the reality we’re staring down––one that’s forcing us to confront some uncomfortable truths about the future of aging, financial security, and what the word “retirement” means for generations who haven’t even bought their first house yet.

But more importantly, it raises a critical question: Are we ready?

Based on data from our recent survey done with our partners at Talker Research, we’ll explore the forces driving this $3.5 million projection––from the emotional and practical implications for those who will be affected to the urgent need for industries to adapt to a future that’s closer than we think.

Solving this problem isn’t just a financial challenge––one that requires people to save more money or work longer hours––it’s about changing our culture to meet the needs of the next generation where they are.

But before we start talking about a change in culture, let’s start at the beginning.

Why $3.5 Million?

The $3.5 million figure isn’t arbitrary; it’s a reflection of the economic and societal shifts that are already underway. Rising healthcare costs, continued inflation, and longer life expectancies are all contributing to a significant increase from the 1-million-dollar retirement fund estimation that lives as the current status quo.

To put it in perspective: By 2065, the average household income is expected to reach $508,950—a staggering 536% leap from today’s $80,610. And with costs rising across the board in all directions, the financial demands of retirement will only grow more intense.

But it’s not just about the numbers. Generational perspectives on retirement are shifting dramatically as well. According to our research, 57% of Gen Z believe retirement won’t even be an option for most people in 40 years.

The skepticism is fairer than you may think. It stems from a combination of economic uncertainty and a redefinition of what it means to age. For many younger Americans, the traditional idea of retirement—leisurely days in luxury communities, traveling the world—is being replaced by visions of multigenerational living, off-grid retreats, and purpose-driven lifestyles.

The emotional weight of this figure is undeniable. It’s not just a financial hurdle—it’s a source of anxiety for individuals and families trying to plan for an uncertain future. And it’s a challenge for industries that must adapt to meet these evolving needs.

Rethinking Retirement: It’s Not Just About the Money

The $3.5 million goal forces us to ask a deeper question: What does retirement even mean in 2065? For many, it’s no longer about financial freedom alone—it’s about connection, flexibility, and purpose.

Younger generations are already redefining what their golden years will look like. According to the research, 29% of Gen Z want to live with family to watch future generations grow, while 20% dream of traveling the world and even space. Others envision owning hobby farms (17%), living off the grid (16%), or creating co-living communities with friends (15%). These aspirations reflect a shift in values away from material excess and toward meaningful experiences.

The shift here is a significant one. Rather than looking at retirement as a defined endpoint, Gen Z views retirement as a more flexible state of financial independence created through continuous work. More importantly, work that doesn’t infringe upon their desires for work-life balance—a priority for more than 70% of Gen Z members, per a recent survey by Randstad.

Safe to say, many members of the generation don’t see a traditional retirement as a possibility. Instead, they’d rather focus on developing a flexible career path that can help them follow their passions and “live their best life”—a divergence from the standard work structure that many of us have come to know.

The Industry Perspective: Are We Ready to Adapt?

The $3.5 million retirement goal isn’t just a challenge for individuals—it’s a wake-up call for industries that serve them. Financial institutions, real estate developers, and policymakers will need to rethink their strategies to address the needs of future retirees.

For financial institutions, this means moving beyond traditional savings plans. What other services or innovative solutions can be created to help account for longer lifespans and higher costs? Are banks and advisors prepared to guide clients toward this ambitious goal? Are they leveraging technology like AI to provide personalized, adaptive financial planning? More than ever, it’s imperative that banks start working with customers at a younger age to help people prepare for the significant rise in costs set to come in the not-so-distant future.

The real estate sector will also need to adapt. With 25% of Americans anticipating renting for life, the demand for affordable, flexible housing options will only grow. Co-living communities, multigenerational homes, and sustainable housing solutions could become the norm, but only if the industry is willing to innovate…is it?

Policymakers, too, have a role to play. Addressing systemic issues like the retirement savings gap, affordable healthcare, and housing accessibility will require bold action and forward-thinking policies. With the rise of AI, will financial literacy become more accessible and standardized? Or do we find ourselves in a situation where the masses are left behind?

With so much to consider, it’s impossible to know where to start, but we know we need to start now.

Preparing for the Future: What Comes Next?

So, what can we do to prepare for a future where $3.5 million is the new retirement benchmark?

For Individuals: Start planning now. Saving earlier, diversifying investments, and embracing new financial tools can make a significant difference. It’s also important to rethink what retirement means to you—whether it’s about financial freedom, personal growth, or something else entirely, it’s more important than ever to have some vision in mind for your senior years.

For Industries: Financial institutions and real estate developers will need to innovate their current models now to effectively meet the needs of future retirees. This could mean offering new paths to saving, creating affordable housing solutions, or leveraging technology to provide better services earlier on, when compound interest can still help the younger generations make headway on their $3.5 million target number.

For Society: A collective shift in how we think about aging and retirement is already in the works. Now it’s just about advancing those values so they work for the up-and-coming working class. Advocating for policies that address systemic challenges and creating a culture that values flexibility, freedom, and purpose over material excess will be key, helping people prioritize happiness over the picket fence storybook ending we’ve grown accustomed to.

The $3.5 million retirement goal isn’t just a number—it’s a challenge to rethink what retirement means and how we prepare for it. It’s a call to action for individuals, industries, and society as a whole to adapt to a future that’s already taking shape.

For younger generations, it simply may not be enough to work harder in the system that’s already been built for them—it may require that system to be reconstructed in a way that better serves those who will reap the benefits from it down the line.

A successful, working Gen Z woman

Empowering a New Era: How Banks Must Adapt to the Rising Economic Power of Young Women

The financial landscape is undergoing a seismic shift, with young women at the heart of this transformation. Financial institutions, especially regional and community banks, are facing the new reality that is the burgeoning economic power of Generation Z and millennial women. For smaller regional and community-focused banks, adapting their approach will be critical in this new era where young women are poised to control significant wealth.

Gen Z and Millennial Women: Who Are They?

Understanding Their Demographics

Who exactly are these young women reshaping the financial world? Gen Z women are typically born between 1997 and 2012, while millennials were born between 1981 and 1996. Together, these groups represent a significant portion of the workforce and are rapidly becoming an economic force to be reckoned with. Many are college educated, tech savvy, career focused, and value driven, seeking not only financial stability but also meaning and impact in their investments.

Income and Lifestyle

Gen Z and millennial women have made their impact in corporate America and are increasingly occupying leadership roles in various industries, which translates to higher incomes than in decades and generations past. According to a McKinsey report, women are projected to control $30 trillion in financial assets by the end of the decade. Despite this growing wealth, many of them feel that traditional banking services don’t resonate with their unique needs and aspirations.

Financial Situations and Goals

Unlike their counterparts of previous generations, these young women face unique financial challenges, including student debt and housing affordability. In addition, a growing percentage of them are staying single, with the share of never-married women growing by 20% in the past decade. As a group, they are focused on saving for the future, investing wisely, and making informed financial decisions, but their financial goals often extend beyond mere wealth accumulation to include social responsibility and sustainable investing.

The Great Wealth Transfer and the Feminization of Wealth

What Is the Great Wealth Transfer?

Over the next 20 years, an estimated $80 trillion will change hands as older generations pass on their wealth. As a significant portion of this wealth transfer benefits Gen Z and millennial women and positions them as key financial decision-makers, banks and financial institutions should be ready with a plan to speak to and cultivate this newly wealthy audience.

The Implications for Banks

This monumental shift, often referred to as the “Great Wealth Transfer,” signifies a crucial opportunity for banks to rethink their strategies. According to a Capgemini survey, only 9% of financial services executives are targeting Gen Z customers. Ignoring this demographic could result in missed opportunities and a failure to capture a loyal customer base.

What Can Banks Do to Better Serve This Demographic?

The Power of Influence(rs)

The good news for banks is that young women are already interested in financial news. A growing number of them are following influencers and online communities focused on financial topics. Platforms like Instagram and TikTok are rife with financial advice tailored to their needs — but just because it’s there and popular doesn’t make it good advice. Banks have a built-in credibility that they can and should leverage on these platforms to engage with young women and build trust through authentic, relatable content. The key to connecting with that audience is to not use the same approach that they’ve been using in the past — it has to feel appropriate for the channel first. Anything that comes across too stiff or formal will feel inauthentic and unrelatable, so banks will need to get comfortable with a new approach to content if they want to connect.

An Adjustment in Offered Services

One of the biggest frustrations for Gen Z and millennial women is the lack of tailored financial services. Many banks offer generalized services that don’t address their specific needs, such as managing student debt, financial planning for singles, investing sustainably, or planning for future family life. By offering customized solutions in formats that resonate, banks have the opportunity to foster long-term loyalty with a base that is historically loyal to organizations that they feel a connection with.

Understand Their Needs

Young women often feel misunderstood or unseen by traditional financial institutions. They seek banks that can empathize with their struggles and offer solutions that level the playing field. By conducting user research into their needs, wants, and preferences and by leveraging transaction data, banks can gain deeper insights into the financial behaviors and preferences of young women and can better tailor their products, services, and resources.

Avoid Patronizing at All Costs

Historically, women have felt sidelined and patronized by the financial services industry. For decades, men have been the primary targets of the thinking, messaging, and advertising for most financial institutions and organizations. But with the coming feminization of wealth, it’s time for banks to rethink that approach. How can they do that effectively? By providing non-patronizing, accessible financial planning tools that empower young women to make informed decisions. This means educational resources, user-friendly digital interfaces, and personalized advice that respects their intelligence and ambition as well as their relationship status and how that affects their plans.

A Chance to Build Long-Term Loyalty with a New Base

The economic landscape is evolving, and young women are emerging as powerful financial players. For banks, this presents both a challenge and an opportunity. By understanding the unique needs of Gen Z and millennial women and offering tailored services, banks can not only capture this valuable market but also build lasting relationships based on trust and mutual growth.

It’s time for banks to recognize the rising economic influence of young women and adapt their strategies accordingly. Those that do will not only thrive in the current financial ecosystem but will also pave the way for a more inclusive and innovative banking future.

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The $3.5 Million Retirement Goal: Are We Ready?