Just a few years into working, Gen Z is already the most anxious generation about AI derailing their retirement—51% fear it will cut their nest egg

Gen Z, the youngest generation in the workforce, is the most anxious about AI potentially scuttling their financial futures, according to a new survey by TIAA. A whopping 51% of Gen Z workers fear AI will negatively impact their ability to save for retirement, a level 11 percentage points higher than the national average. Much of this anxiety stems from concerns over AI's potential to disrupt their career and earnings, with 42% of Gen Z workers feeling "extremely" or "very" concerned about AI's impact on their jobs and earning potential.

Business leaders, like TIAA CEO Thasunda Brown Duckett, have warned that AI will bring major disruptions, including job losses, and that young workers who don't adapt to AI may find themselves at a disadvantage. While AI could lead to longer lifespans, Gen Z workers are worried they may run out of money in retirement. To tackle this, 59% of Gen Z workers fear they'll withdraw too much from their retirement savings and deplete their funds, compared to 47% of millennials and 54% of Gen X and baby boomers.

Moreover, 47% of Gen Z workers say traditional retirement planning doesn't account for longer lifespans. These worries could push young workers to start saving earlier, but Duckett emphasizes that starting early is crucial. "The first thing I tell young people is, your very first job, max out before you get the check, because once you get it, you will find ways to spend it," she advises, highlighting the power of compounding.