Younger Generations Plan for Retirement Without Relying on State Pension

Why it matters locally: While state pensions are a federal program, Colorado's state and local government employees, like those in the City and County of Denver City Hall or Garfield County Administration, also participate in the Colorado Public Employees' Retirement Association (PERA), which faces similar long-term solvency discussions.

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Many younger adults are adjusting their long-term financial plans, operating under the assumption that the state pension system may not be available when they reach retirement age. Surveys exploring generational attitudes towards retirement consistently show that a substantial portion of Gen Z holds this view. These individuals report that they do not expect to receive a state pension in their later years. This outlook shapes their current financial decisions regarding savings and investments. This trend suggests a shift in how younger generations approach future financial security, moving away from past reliance on state-provided retirement benefits. Instead, they are exploring private savings and investment strategies to secure their financial futures.