Skip to main content


Effective Strategies Millennials Should Take To Prepare For Retirement

Saving for retirement may not seem like a priority when you are young. When college students graduate, they tend to be ready to conquer the world, but are they ready? Not possessing adequate financial knowledge about preparing for retirement after college can lead to a failure to invest in a secure retirement plan. Before starting a job after college, millennials should educate themselves on the barriers to retirement and ways to be financially ready to retire.

Women and Man looking at paper
Woman talking with retired father about retirement.

Learn from your Mistakes

Most millennials in their 30’s have had adequate time to prepare and learn from the mistakes of not investing in their retirement early. Not investing early has caused some millennials in their 30’s to have to catch up and recover from not investing in their 20’s but will allow them to have a significant financial cushion in place at retirement age. However, 20% of younger millennials in their 20’s may not have adequate funds for retirement. Younger millennials want to chart their path in life. They may not follow the traditional method of staying in one profession throughout their lifetime and do not seem to value loyalty to a specific employer, nor do they want to commit to one career for the long term. This method of professional employment may not enable them to become “vested” into an organization’s retirement plan or increase their income level consistently due to “job hopping” and constant career changes.

Barriers to Retirement

One of the most significant barriers preventing millennials from being financially ready to retire is employers shifting from pension plans to defined contribution plans or 401(k)’s. The shift to defined contribution and 401(k) plans compels an individual to remain with a company long enough to become vested in a retirement plan. Ultimately, not contributing to a voluntary retirement plan offered by employers is like throwing money down the proverbial drain and can lead to reduced funding availability in an individual’s retirement years.

How much are you going to need for retirement?

Steps to Prepare for Retirement

To be financially ready to retire, millennials should take the following steps:
  • Educate themselves on the retirement plan offered by their employer (vesting, funds, and fees).
  • Invest a percentage that takes advantage of the employer contribution match.
  • If you are self-employed, seek out a retirement plan contribution option.
  • Evaluate their monthly income and expenses to determine where to find more cost savings to invest in retirement.

Preparing for your retirement in your 20’s is the best way to maximize the benefits offered by your employer. Take advantage of the offerings as soon as possible and continue to increase your contributions as your financial situation changes. It’s never too late to invest in yourself. 


Popular Posts

9 Ways Employers Can Celebrate Juneteenth

What's one way a company can recognize and celebrate Juneteenth? To help you find ways to celebrate Juneteenth as a company, we asked business leaders this question for their best insights. From supporting Black-owned businesses to hosting an African-American guest speaker, there are several ideas that may help you bring your employees together to recognize and celebrate Juneteenth properly. Here are nine ways employers can celebrate Juneteenth and make a financial and social impact within your community and with your employees: Launch a Juneteenth Team-Building Event Invite an African American Guest Speaker Line Up Activities To Help Employees Reflect and Give Support Black-Owned Businesses Go on Museum Tours Celebrate Through Social Media Choose a Way To Actually Celebrate Together Play Trivia Games Throw Virtual Parties Launch a Juneteenth Team-Building Event A company can commemorate Juneteenth by launching a team-building event, where everyone is tasked with researching and pr

Top 4 Ways To Budget For The Holidays

Holiday gift-giving is a time of joy, and the expression you see on someone's face when they open that perfect gift can confirm that you found the perfect gift. Gisele Bundchen stated that "Christmas and the holidays are the season of giving. It's a time when people are kinder and open-hearted." When searching for the perfect gift(s), it's also essential to keep your budget in mind. Here are tips to keep your holiday budget on the right track. Photo by  Jakob Owens  on  Unsplash Budgeting for the Holidays Budgeting for the holidays begins by estimating what you plan to spend for gifts, travel, and food. If you have children, budgeting for presents keeps your budget on track by designating what you will spend on each child. If you have a significant other, agreeing on gift purchase limits for each other can help ensure that one partner doesn't overspend. You can also pre-plan your travel by budgeting at least six months in advance and establishing a limit for f

11 Professionals Share Tips on Asking For A Raise

What's one thing to consider when asking for a raise?  To help you with preparing to ask for a raise, we asked HR managers and CEOs this question for their best insights. From communicating challenges you overcame to presenting tangible numbers and results, there are several tips that may help you ask for a raise in the future. Here are eleven things to consider when asking for a raise: Communicate Challenges You Overcame Consider Asking For Perks Prepare for the Worst Ask for More Than You'd Settle For Make Sure Your Industry is in Good Shape Expect a Waiting Period Determine Why Your Boss Should Give You a Raise Come Into The Meeting Well-Prepared Plan a Year Ahead Consider Your Timing  Present Tangible Numbers and Results Communicate Challenges You Overcame Your boss and company must see your real growth. Therefore, instead of raving about your achievements, narrate the stories of how you encountered a challenge, made a superior result, and solved an issue. When we're ne