Are you the generation which saves the most money?

Are you the generation which saves the most money?

I wrote the original article in 2024 after coming across an interesting chart comparing the savings of different generations. At that time, the conclusion seemed quite obvious:

Baby Boomers were the savings kings.

They had the highest proportion of people with very large savings, while Gen X was building up behind them. Millennials and Gen Z were still much younger, so naturally their accumulated savings were lower.

But two years later, I think there is a more interesting question.

Are the younger generations actually worse at saving?

Perhaps not.

In fact, some of the latest Malaysian data suggests that we may have been too quick to judge them.

#1 – Baby Boomers have had something the young don’t have

Let’s be fair. If we compare a 65-year-old with a 25-year-old and simply ask:

“Who has more money saved?”

The 65-year-old will probably win.

But that’s not necessarily because the older person is more disciplined.

They have had 40 years to accumulate money.

They have worked longer. They have had more salary increments.

They may have bought properties decades ago at much lower prices.

Their children may already be working. Their mortgage may be fully paid. Their car may be fully paid.

In my own case, I can relate to this.

I fully paid off my car about ten years ago and my wife drives a 2 year-old Alza currently. That’s the only car loan we pay every month. That makes saving easier. It wasn’t always like this.

So when we look at an older generation with substantial savings, we need to understand the journey behind the number.

#2 – But here is something surprising about Gen Z

A 2025 Malaysian Financial Literacy Survey by RinggitPlus found that 40% of Gen Z respondents save more than RM500 a month, up from 36% in 2024.

Only 11% said they don’t save at all, which was the lowest proportion among the generations surveyed. (thestar.com.my)

Even more interesting:

57% of Gen Z respondents said they had already started preparing for retirement.

That’s quite something.

We often hear:

“Young people don’t know how to save.”

“Young people spend everything.”

“Young people only want the latest phone.”

Maybe that’s not entirely fair.

Some do. But some don’t.

And perhaps the younger generation is actually becoming more financially aware because they have access to so much more information.

#3 – My generation had one big advantage

I’m from Gen X.

And when I compare my financial journey with younger people today, I think we had one major advantage:

We were not constantly being asked to spend.

There was no TikTok Shop.

No Shopee flash sale.

No food delivery app sending discount notifications.

No “Buy Now, Pay Later”.

No Instagram showing us what everyone else had bought.

If I wanted to buy something, I had to physically go somewhere.

That created friction.

Today? One click. Done. RM100 gone. Another click. Another RM200 gone.

Then the credit card bill arrives.

Aiyoh.

So I think saving today can actually be harder psychologically, even if young people are more financially educated.

#4 – But the young have another advantage

And this is where I think Gen Z has an advantage over us.

They have information.

When I was younger, if I wanted to learn about investing, I might read a newspaper, a book or attend a seminar.

Today, a 20-year-old can learn about:

EPF. Stocks. REITs. Property. Unit trusts. ETFs. Budgeting. Side hustles.

Financial planning.

All from a phone.

The 2025 survey found that 62% of Malaysian Gen Z respondents use AI-powered budgeting tools, robo-advisors or chatbots, while 68% of Malaysians use social-media platforms such as TikTok and Instagram to learn about money. (thestar.com.my)

Of course, information can also be dangerous.

There are plenty of people online promising:

“Turn RM1,000 into RM100,000.”

Don’t believe everything.

Financial literacy isn’t simply knowing more.

It is knowing what to do with what you know.

#5 – Saving RM500 a month is a great start

Let’s make this very simple.

A 25-year-old saves:

RM500 a month.

That’s:

RM6,000 a year.

Do that for 10 years and the contributions alone are RM60,000.

Do it for 20 years:

RM120,000.

And this doesn’t include investment returns.

This is why I keep saying:

Time is the young person’s biggest financial advantage.

A 25-year-old may not have RM100,000 today.

But he or she has something I cannot buy back:

30 or 40 years of time.

That’s incredibly valuable.

#6 – EPF tells us something uncomfortable

The latest EPF retirement framework makes this even more important.

From 2026, EPF’s new benchmarks at age 60 are:

RM390,000 – Basic Savings

RM650,000 – Adequate Savings

RM1.3 million – Enhanced Savings. (kwsp.gov.my)

And as of October 2024, only around 36% of active formal EPF members met the then-existing Basic Savings level based on age. (kwsp.gov.my)

So perhaps the question shouldn’t be:

“Which generation saves the most?”

It should be:

“Which generation starts saving early enough?”

Because someone who saves RM500 every month from 25 may eventually be in a much stronger position than someone who starts saving RM2,000 a month at 45.

Again:

Time matters.

#7 – What about me?

I still have to remind myself to save more. Yes, even after all these years of talking about investments.

Why? Because earning more doesn’t automatically mean saving more.

Lifestyle can expand very quickly.

A bigger salary can become:

A bigger car.

A bigger house.

More holidays.

More restaurants.

More shopping.

More “small” expenses.

I also like nice things.

I like travelling.

I like good food.

I have plenty of shoes.

Haha.

So saving is still something I have to consciously manage.

The goal isn’t to stop enjoying life.

The goal is to make sure today’s enjoyment doesn’t destroy tomorrow’s financial freedom.

SO, which generation saves the most?

If we are talking about total accumulated savings, older generations will naturally have an advantage.

Baby Boomers have had more time to accumulate wealth.

Gen X is still building.

Millennials are entering their peak earning and family-building years.

Gen Z is just getting started.

But if we are talking about financial behaviour, the picture is much more interesting.

Gen Z may actually be doing better than we think.

The latest Malaysian survey suggests they are saving earlier, thinking about retirement earlier and using digital tools to manage money. (thestar.com.my)

And I think that’s good news.

Because every generation has its own challenges. My generation had fewer distractions.

The younger generation has higher living costs and a much stronger consumer culture.

But they also have much more information and tools.

So perhaps instead of saying:

“Our generation was better at saving.”

We should say:

“Every generation has a different financial game to play.”

For me, the rule remains quite simple.

Save first.

Invest consistently.

Avoid unnecessary debt.

Pay off the big commitments when you can.

And don’t forget to enjoy life.

Because money isn’t meant only to sit in a bank account.

Money is supposed to give us choices.

And if we start early enough, perhaps when we reach 60, we won’t be asking:

“Did I save enough?”

We’ll simply say:

“Okay lah. I think I can enjoy my kopi now.”

Happy saving.

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Sources

• The Star — How Malaysian Gen Z is more disciplined with money than you think — Malaysian Financial Literacy Survey 2025 findings on Gen Z saving and retirement preparation. 
• EPF — Retirement Income Adequacy Framework — current retirement savings benchmarks and the proportion of active formal members meeting the previous Basic Savings level. 
• Original Kopiandproperty article — Do you know which generation saves the most money? — original 2024 article and the personal context about the author’s savings and fully paid cars.