Platforms like Instagram, TikTok, and YouTube are playing a central role in how Generation Z and millennials prepare for retirement.
Social media today is more than sharing family, trending dances, and funny memes—it’s an influential forum shaping how some young adults think and plan their financial futures.
Newly released data from our Principal® Real Life Retirement Journeys survey
Thirty-seven percent of Gen Z and 35% of millennials cite social media as a source of inspiration when thinking about what retirement could look like, far surpassing Generation X (18%) and baby boomers (14%).
These platforms offer a constant stream of “aspirational retirement lifestyles”—from early retirement trends to minimalist and wellness-focused living. Social influencers showcase globe-trotting freedom, waterfront views, and early retirement funded by stock investments or booming rental property empires. They paint a picture of what seems possible through some combination of planning, trendspotting, determination, and good fortune.
While this constant stream of social content can be motivating, it can also be overwhelming. In some cases, young savers might even make rash decisions based on what they see. The Principal® Real Life Retirement Journeys (PDF) report highlights that those influenced by social media are twice as likely to say their actual retirement will be “much worse” than their initial expectations. Nearly half of these individuals also admit to feeling worse about their progress compared to what they see others accomplishing online.
It’s a classic case of social comparison theory, amplified by algorithms. Young savers, often still grappling with debt, housing costs, and stagnant wages, are judging their success against carefully curated content that does not always reflect the full financial picture. In other words, the perception gap is widening between the retirement dreams of individuals, which are highly personalized, and the distorted view of reality they see through social media.
Additionally, the aspirational content can also contribute to a sense of paralysis. Many Gen Z respondents say they want to save more but don’t know where to begin, or feel they lack the resources to start. This has elevated the need for more financial education and advice from professional sources and financial professionals to help prevent delayed or derailed retirement goals with regular opportunities to evaluate decisions and monitor progress.
But there’s also reason for hope: Despite feeling overwhelmed, younger savers are making strong progress. Seventy-six percent of Generation Z respondents are already saving for retirement, and more than half have reduced discretionary spending to do so. They are actively seeking guidance from family and online resources. The real issue is confidence, with many underestimating how well they are doing compared to the social media spectacle.
Social media’s role in shaping financial behavior is growing and, in some ways, democratizes access to financial literacy. But it also creates a distorted image, highlighting inflated scenarios while excluding the messier, long-term path to financial security that develops throughout 30-40 years of retirement savings.
Financial institutions and employers can strengthen connections and meet young adults where they are by tapping into their digital habits and providing realistic, easily understandable online advice. For individuals, the key may be to follow with curiosity, but to plan your retirement with the realism and knowledge of proven financial professionals.
A scroll through social media might spark your retirement dreams. But it’s your long-term saving and investing decisions, not your social feed, that will bring them to life.
