Women traditionally have lower levels of confidence in their financial security and are less optimistic about their retirement preparedness than men, but young women are challenging that trend.

Nearly six in 10 Gen Z women said they believe they will be financially prepared for retirement, according to Northwestern Mutual's 2023 Planning & Progress Study. That is a significantly higher proportion than women in other generations, including Gen X women who were least confident in their retirement preparedness with only 38% saying they will be financially prepared when they reach retirement.

Younger women also showed a greater awareness that their financial plans need improvement, with 79% of Gen Z and 76% of millennial women saying their financial planning could improve. In addition, younger generations of women are more likely to prioritize saving over paying down debt than their older counterparts, the study found.