The path to retirement is different for everyone, but one financial truth applies to all: knowing when to invest or focus on earning a higher income. While there are several strategies for building wealth and investing, the key is in timing, which may depend on your age.
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Financial goals evolve during different stages of life and what makes sense for Gen Z might not be the priority for millennials when it comes to preparing for retirement. As 2026 approaches, finance experts weigh in on what each generation should prioritize — building net worth through investing, increasing income or a balance of both.
Gen Z (Born 1997 to 2012)
Gen Z, roughly aged 13 to 18, is the youngest working generation, just beginning their careers in the workforce. While this group has the most time to save for retirement, finance expert Ramona Ortega, founder of THRIVE Campaign and WealthBuild.ai, believes Gen Z should focus on investing.
“Get the highest paying job you can get to set the floor for future negotiations, then aggressively invest using a Roth IRA and 401k [plan],” she said.
Investing early helps you earn more with compound interest, allowing you to take on more risk and develop good financial habits. This chapter is also the time to build a high credit score, “because a good credit score will save you money over the long run, especially in big asset purchases like a house,” Ortega said.
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Additionally, it’s also vital to explore what’s important and meaningful at any phase of life, according to estate planning attorney Kevin Quinn.
“If you can connect your purpose with your job, you will be more valuable than if you are just doing something to be able to earn a living,” Quinn said. “It is important to connect your purpose to what you do on a daily basis. The purpose of building wealth allows you to organize your time.”
Millennials (Born 1981 to 1996)
Millennials, aged 29 to 44, are the second-youngest generation in the workforce and are typically well-established in mid-career roles, balancing family responsibilities and facing financial pressures. As they move into their 40s, challenges such as lifestyle costs, larger mortgages and college funds can arise and limit how much salary alone can support future wealth.
According to Ortega, millennials should not lose sight of either investing or increasing income.
“Millennials should be more aggressive in optimizing their wage growth in order to invest more into their tax-deferred retirement accounts,” she said. “[Twenty-nine to] 44 is your primary wage-earning years and you can really make big leaps in salary, which means you can maximize your 401k [plan] and put leftover money into a brokerage account.”
Gen X (Born 1965 to 1980)
Gen Xers are typically between 45 and 60 years of age and often hold leadership or upper-management positions. For this generation, Ortega also recommends investing heavily.
“The fact is that compound investing returns will outperform incremental wage increases, especially given that wages have been stagnant in comparison to rising interest rates,” she explained.
Baby Boomers (Born 1946 to 1964)
Baby boomers are 61 to 79 years old and while many have retired, a significant number still remain in the workforce, either part-time, in consulting roles or in senior advisory positions.
“Baby boomers should focus on a dividend strategy and optimizing taxes, as well as extending their income into retirement through businesses or passive income strategies, which are technically investments (alternative investments),” said Ortega.
Silent Generation (or Traditionalists) (Born 1928 to 1945)
Aged 80 to 97, the majority of the Silent Generation are retired, but there is a small fraction that works part-time, according to the U.S. Department of Labor.
“Those in the silent generation should be focused on preserving wealth, as the investing time frame is too risky,” Ortega stated.
Final Take To GO
Whether you’re just starting out or planning for retirement, knowing when to focus on income versus net worth can help you make smarter financial moves.
As financial expert Eric Mangold, certified wealth strategist and founder of Argosy Wealth Management, puts it, “Regardless of your age, you should be pulling both levers because you don’t want to only focus on increasing your income and neglect intelligent investing.”
By aligning your financial strategy with your life stage, you can make smarter decisions in 2026 — and set yourself up for long-term success.
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This article originally appeared on GOBankingRates.com: Net Worth or Income — Which Each Generation Should Focus on Increasing in 2026
