Select Page


When you’re young, it can seem like retirement is something too far into the future to worry about. However, it is possible to gain an enormous advantage if you begin to save early, due to the way interest compounds when you save money in specific ways. If you are considering starting to save for retirement in your 20s, here are some tips to help you meet your goals and grow your money effectively so that you can look forward to a secure, enjoyable retirement.


Make a Plan

Amid the many expenses that people in their 20s need to consider, putting aside money for retirement can seem like an unnecessary expense. Creating a budget allows you to clearly define the amount of money you are willing to contribute to savings and can help you curtail unnecessary spending, as well. When you save early, the important part is not how much you contribute, but that you create a habit of putting aside money regularly. Considering setting long-term financial goals so that you are aware of how much you need to have saved at certain milestones in your life, and can calculate how much you should save based on those numbers.


Create a Specialized Account

When saving for retirement, it’s advisable to have a special account where you can set aside money that will allow it to accumulate more quickly. If your employer offers a 401(k) account, you should definitely consider investing in it. Some employers even offer to match the amount employees contribute up to a certain point, which allows you to accumulate even more money. If your employer does not offer this option, look into opening a Roth IRA, which can be a flexible and lucrative option.


Ask for Help if You Need It

Choosing the right assets to invest in and knowing how much you should contribute to your accounts can be a daunting task. If you find yourself overwhelmed by financial information and feel unable to make an informed decision, don’t be afraid to seek professional advice. Getting in touch with a financial planner or advisor can help you make the most advantageous decisions for growing your investments in the long term.


The most important aspect of beginning to save for retirement early is ensuring that you are making consistent, sustainable investments in your future and that you resist the temptation to spend unnecessarily. Being young and saving large portions of your income can be difficult, but doing so is important to your future success and happiness.