1. Retirement Planning For 20-Somethings: Introduction
  2. Retirement Planning For 20-Somethings: When You Should Start Planning
  3. Retirement Planning For 20-Somethings: Goal Setting
  4. Retirement Planning For 20-Somethings: Saving Options
  5. Retirement Planning For 20-Somethings: Choosing Savings Accounts
  6. Retirement Planning For 20-Somethings: How Much Should You Add To Your Retirement Nest Egg?
  7. Retirement Planning For 20-Somethings: Signing Up For Retirement Savings Accounts
  8. Retirement Planning For 20-Somethings: Choosing And Managing Your Investments
  9. Retirement Planning For 20-Somethings: Incorporating Lifecycles In Your Planning
  10. Retirement Planning For 20-Somethings: Retirement Resources
  11. Retirement Planning For 20-Somethings: Conclusion

Your plans for your retirement should be designed and implemented as soon as you start working. This may seem like a daunting task, but it can be easily managed with the help of an experienced retirement planning professional. Many employers provide financial advisors as part of the benefits available to employees, and many of these financial advisors are qualified to help employees with their retirement planning needs. If you have access to such benefits, it may make good financial sense to take advantage of them, as hiring your own financial advisor may cost you. If your employer does not provide such services, you may need to hire your own financial advisor, unless you are knowledgeable enough to make suitable decisions about your retirement planning.

Starting Later Makes it Harder
Ideally your financial advisor will perform a retirement assessment, which takes many factors into consideration, including your income, expenses and your desired retirement lifestyle. Based on your retirement assessment, your financial advisor will help you to determine if your goals and objectives are attainable; make recommendations for any changes that need to be made and determine how much you need to add to your retirement nest egg each pay period. The amounts that you will need to add each period will depend on how soon you start saving.


  • Assume that you met with a retirement planning counselor, and she created a retirement profile which shows that you will need $1 million for your retirement.
  • Assume too that that you are 25 years old, you plan to retire at age 65 and your retirement analysis assumed an average rate of return on investments of 4%. (Note: reasonable rates of return depend on factors which include the amounts you have saved, the market performance of the assets in which you invest your savings, and for cash and cash equivalents, the rates offered by financial institutions. Your financial advisor will help you to determine what is reasonable.)
  • In order to reach that goal, you will need to save $859 per month.
  • If you start 10-years from now, you will need to save about $1,455 per month.
The longer you wait to start, the larger the amount you will need to save each month, which could make it harder for your to save the required amount, and necessitate postponing your plans for retirement.

Retirement Planning For 20-Somethings: Goal Setting

Related Articles
  1. Retirement

    Can You Retire In Five Years?

    The countdown is on. Find out whether you'll be ready to leave the working world.
  2. Retirement

    Saving For Retirement: The Quest For Success

    We'll show you how to set yourself up to retire in style.
  3. Financial Advisor

    When to Plan for Retirement Income vs. Savings

    Accumulating a nest egg is the first step in effective retirement planning. The second is making sure you have enough income after retiring.
  4. Retirement

    Making Your Own Comprehensive Retirement Plan

    Your retirement plan should include much more than how much you will save and how much you need. It must take into account your complete financial picture.
  5. Retirement

    Should You Pay Someone to Create a Retirement Plan?

    Nobody likes to pay for help, but it may be necessary to shell out the extra cash for proper retirement planning help.
  6. Retirement

    How to Make Early Retirement a Reality 

    Early retirement doesn't have to just be a pipe dream if you've got a plan for making it happen.
  7. Retirement

    How to Calculate What You Need for Retirement

    You might not be able to predict all the variables that impact retirement planning, but there are tools to help make simple calculations.
  8. Retirement

    Will Your Retirement Income Be Enough?

    Find out how to determine whether you're on the path to a comfortable retirement, or financial ruin.
  9. Financial Advisor

    Retirement Looming? Here are 6 Essential Tips

    Planning on retiring in the next decade or so? Here is a checklist for both advisors and those planning on their own.
  10. Retirement

    Signs You're Ready to Retire

    Learn the five signs that indicate you are OK to retire. Discover what steps are crucial to determining an effective and successful retirement plan.
Frequently Asked Questions
  1. Depreciation Can Shield Taxes, Bolster Cash Flow

    Depreciation can be used as a tax-deductible expense to reduce tax costs, bolstering cash flow
  2. What schools did Warren Buffett attend on his way to getting his science and economics degrees?

    Learn how Warren Buffett became so successful through his attendance at multiple prestigious schools and his real-world experiences.
  3. How many attempts at each CFA exam is a candidate permitted?

    The CFA Institute allows an individual an unlimited amount of attempts at each examination.Although you can attempt the examination ...
  4. What's the average salary of a market research analyst?

    Learn about average stock market analyst salaries in the U.S. and different factors that affect salaries and overall levels ...
Trading Center