CURATED READS FOR GEN Z—AND THEIR Z-CURIOUS COLLEAGUES

first up

Welcome back! This week, we’re talking about the myth of early retirement.

As many older people increasingly realize that they may have to put their retirement plans on hold, Gen Z appears to have something else in mind. 

American Gen Zers, on average, say they want to retire earlier than those before them. Some surveys show that to mean “before age 65.” Other studies peg the number earlier, at 61. And yet another survey finds that more than half of Gen Zers polled have pledged allegiance to the FIRE (financially independent, retire early) movement. Whatever the exact age ends up being, the data generally seem to reflect Gen Z’s desire to sunset their careers earlier than millennials, Gen Xers, and boomers all think they will. 

Why would retiring early (in some cases, as soon as your 30s and 40s) make sense for Gen Z? And could we all <gestures broadly> benefit from thinking about retirement a little differently? 

The reality is that most Americans believe that retirement, long conceived in many Western countries as the transition out of 50-ish years in the workforce, is financially out of reach. Setting aside the different reasons why retirement may not be achievable for millions of people, there’s another snag in Gen Z’s early retirement picture: people younger than millennials (Gen Z, Gen Alpha, and so on) expect to live longer than their parents. In fact, living to 100 and beyond in this century may no longer be a marvel. 

With a longer life comes new considerations around work and well-being. Spending the later chapters of one’s life—which, for some people, may stretch to 30 or 40 years after the traditional retirement age—without structure or a meaningful connection to society may actually be harmful to one’s health, McKinsey research shows.

That doesn’t necessarily mean Gen Zers will have to spend the rest of their lives working, but a retirement that includes some work—plus volunteering, learning, or participating in community activities—might actually be a good thing. Such a scenario could be beneficial not only for people’s health but also for global economies. By re-entering the workforce, older adults (who want to work) could give a nearly 15 percent lift to GDP, as is the case for South Korea, according to research from McKinsey senior partner Hemant Ahlawat and coauthors. (By the way: norms and expectations around retirement vary around the world.)

In an interview with McKinsey, Lynda Gratton, author of The 100-Year Life: Living and Working in an Age of Longevity, advocates for “disconnecting age from stage.” That makes phrases like “college age”—which these days could refer to, say, a 61-year-old as much as a 19-year-old—meaningless. Taking breaks throughout one’s working years (think sabbaticals rather than definitive retirement) may make working for longer more sustainable. 

Plus, the self-imposed pressure that some Gen Zers feel to achieve huge professional accomplishments early on suddenly seems less important when rethinking the conventional retirement approach. “People aren’t going to have that three-stage career,” Gratton said, referring to the traditional education, working, and retirement stages of life. Instead, people may choose to redirect their path, either by learning a new skill or taking a break altogether.

VISUALIZE IT

Restaurants, food, and travel are all splurge-worthy consumer spending categories.

WAIT, DON’T SCROLL

Brussels, we have a problem. Europe’s aerospace and defense sector is having trouble recruiting the next generation of talent.

Lean on me. Just how interdependent can two economies be? A new data tool shows how different countries rely on one another through trade.

Tech-tonic shift. Generative AI could add as much as $4.4 trillion to the global economy annually.

NOT US; STILL GREAT

Aesthetics > authenticity? Dupe culture isn’t exclusive to fashion—it’s woven into the world of interior design, too. [Architectural Digest]

Clocking out. Gen Zers are leaving their accounting and finance jobs for these five reasons. [Fortune]

CROSSWORD

— Edited by Alexandra Mondalek, editor, New York