Why Gen Z Might Retire Earlier Than Boomers If They Do This Now

For decades, Baby Boomers defined the "great Australian retirement." Many worked hard, bought homes early, and retired at 65 with a paid-off property and superannuation to fall back on. But times have changed. Housing prices have skyrocketed, wage growth has stagnated, and younger Australians face a very different economic landscape.

Still, Gen Z might have an unexpected edge — if they act early and strategically.

The Shift: Retirement Is No Longer an Age, It’s a Number

Retirement isn’t about hitting 65 anymore. It’s about having enough income to replace your salary. That’s why many Millennials and Gen Z investors are focusing on building passive income streams, especially through property, instead of relying on a pension that may look very different in decades to come.

The Australian Bureau of Statistics reports that the median superannuation balance for Australians aged 60 to 64 in 2020–21 was just $211,996 for women and $361,539 for men. For most people, that’s not enough to retire comfortably without an additional income source.

Why Property Still Wins for Young Investors

Even with tighter lending conditions, property remains one of the most effective tools for building long-term wealth. Here’s why:

• Leverage: You can use a bank loan to purchase a high-value growth asset.
• Compound growth: Property values and rental income tend to increase over time, especially in well-chosen markets.
• Tax advantages: From negative gearing to depreciation, property offers significant tax benefits even while you’re working.

Unlike shares, property doesn’t need daily attention. It can quietly grow in value while generating income, helping you build equity and options over time.

Starting Young Is the Game-Changer

The earlier you start, the more time compound growth has to do the heavy lifting. For example, a $500,000 property purchased at age 23 and held for 20 years with 5% annual capital growth could grow to over $1.3 million — well before you turn 45. With rental income covering your mortgage and expenses, your investment can generate wealth while you continue working or studying.

What’s Holding Gen Z Back?

According to ASIC’s 2023 Moneysmart Youth Research, 62% of Australians under 35 feel overwhelmed by the idea of investing. Many assume it’s only possible with a high salary or financial help from family.

But strategies like rentvesting — renting where you want to live while investing where you can afford — or co-investing with a sibling or friend are already helping thousands of young Australians get started.

The Window of Opportunity

Rental demand is rising. Construction activity is struggling to keep up. Immigration is increasing. At the same time, Gen Z has better access to digital tools, education and support networks than any generation before.

Those who take action now — instead of waiting for the “perfect time” — can build a strong portfolio that creates genuine financial freedom long before their 60s.

Ready to Build a Plan That Gets You There?

We help young Australians build long-term wealth through smart property investment, without the hype.

Reach out to the team at Young Investors Club enquiries@younginvestorsclub.com.au

Source: Australian Bureau of Statistics (2022), “Household Income and Wealth, Australia, 2019–20 and 2020–21” Source: ASIC Moneysmart Youth Research (2023), “Attitudes to Money Among Young Australians”