Brynnley Beckman is only 23, but she is already thinking about retirement.

She teaches ninth grade biology at the Shelton School in Dallas and contributes 3 percent of her salary to an employer-sponsored retirement fund. She hopes to increase her contribution by 1 percent each year.

“I wanted to start saving early because the more the money sits, the more it compounds, the more it’s going to grow,” Ms. Beckman said.

Like many of her peers in Generation Z, defined roughly as people born from 1996 to 2012, Ms. Beckman is motivated to save. According to a 2024 report from TIAA, which provides retirement planning services for employees in the education, health care and nonprofit sector, 20 percent of Gen Z-ers are saving for retirement. They’re also contributing to 401(k) plans at higher rates than millennials did when they first entered the work force, according to a 2023 Vanguard study.

“Gen Z in general, and in particular women, are starting to get an understanding that the more that you save and invest, the more agency and freedom you have over your life,” said Ryan Viktorin, a certified financial planner and financial consultant at Fidelity Investments.

Financial independence later in life is Ms. Beckman’s main motivation for putting money into a 403(b) plan, which is similar to a 401(k) but typically offered by public schools, nonprofits and religious institutions. “I could retire at the age that I want to, rather than working later, and have financial freedom and security,” Ms. Beckman said.

Why is Gen Z better at saving?

Financial experts credit Gen Z’s ability to save more at a younger age to a policy changes and technological advancements.