For those in their 20’s , retirement is mostly in  the back of their minds. Many millennials are simply trying to get by and keep their head above water, so how is it they can be expected to save money for retirement? Fortunately, even those who struggle to make ends meet can, at the least, consider retirement, or can find some guidance for making retirement savings a reality. But before that can happen, there are things millennials should absolutely understand about retirement planning.


  • You do have some money, you just don’t save any of it –  It’s time to get real. Going out every weekend and using up every dollar from every paycheck is not going to set you up well for your future.
  • Start Saving – It’s never too early to start saving money. In the event of a rainy day, you should certainly have some savings built for those reasons. But as far as saving for retirement, $100 a month will get you further than nothing at all. It’s also a manageable amount per month.
  • No one is going to do it for you – It is said that many millennials are under the impression that they’ll receive their retirement savings from a trust fund when a family member passes, or even worse, from the lottery. These are not viable plans for retirement, and if that is what you’re considering, you might want to rethink your plans for the future.
  • Consider Investing – Once you’ve saved up a little bit consider buying stocks or bonds. They are manageable ways to build your savings but know that you need to keep an eye on it. Working with a financial planner or stockbroker can assist you with this and provide assistance in making good decisions with your investments.
  • Don’t count on Social Security – It is said that the Social Security fund will be depleted by 2050, which puts most millennials in their 60’s, the time that most of them would be retiring, that is if they planned accordingly.
  • Don’t touch your 401k! – If you have a job that has a 401k plan for you, leave that money be. The taxes that will be taken out when you withdraw money prematurely are a pretty big hit, but if you leave the money alone, you’ll have yet another fund for retirement.
  • Choose one career and stick with it – This isn’t to say that you can’t change professions if you feel the need to, and it isn’t to say that moving from one company to another is going be detrimental either. But staying at one job and not moving around from one company to another is beneficial to your savings. Oftentimes, when in career limbo, people have to depend on their savings for some time, causing their savings to dwindle. Do your best to stay in one career, and stay with the same company, so that you can move up and receive a higher income.


These rules for saving for retirement are the reality that all millennials need to be made aware of. Many millennials are simply waiting for a one in 300 million chance, or a trust fund to come their way rather than working towards financial freedom themselves. Understanding that it doesn’t get easier the longer you put off saving for retirement, and knowing that it’s never too early to start is vital. If you’re a millennial, or know someone that is, share this blog with them, and encourage them to talk to a financial planner today.