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Generation Y Are Not Saving For Retirement

Did You Start Actively Planning For Your Retirement in Your 20s?

Sure, Gen-Yers have their whole lives ahead of them, but it's better to start saving as early as you can to enjoy the snowball effect of compounding, which will enable your money to grow faster. That will leave you with more money in your retirement. Turns out 55 percent of 20-somethings have not started to save for retirement and only 21 percent are actively planning for retirement, according to investing firm Scottrade.

More than ever, it's crucial for 20-somethings to start relying on their own savings for retirement, because as director of Scottrade, Craig Hogan, says:

What Gen Y may not realize is that older generations based their retirement planning on the three-legged stool of Social Security, savings and employer pensions. The approach their parents and grandparents took toward saving is no longer appropriate because the old model doesn’t exist. By the time Gen Y retires, they may have only one reliable leg to stand on — their own savings — and they need to plan accordingly.”

So what's the appropriate age to start saving? Half of the Baby Boomers who are about to retire recommend saving before the age of 25. I know that although we all know what's good for us, it very often does not pan out that way. So I'm wondering, did you start actively planning for your retirement in your 20s?

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Join The Conversation
TheBestRedDress TheBestRedDress 6 years
I'd planned on it, but I didn't start until later. The early 20s weren't my saving years.
bluebellknoll bluebellknoll 6 years
The small company I worked for started me on a retirement plan when I was 20.
le-romantique le-romantique 6 years
I did mainly to cut down on my taxes since I get paid freelance/self employed (even though I work for a company... yeah lets not get into it.) And since I owed over $3,000 in taxes last year, I decided to start putting money in places, donating, etc. to help get it down. My poor generation will probably only have their own savings to depend on when they're at "retirement" age... whatever that means anymore!
itsallabouttheg itsallabouttheg 6 years
i interned with a city, so i got started "by accident" while i was still in grad school and rolled that account into a roth ira. in contrast, i had to be in my first "real" job for two years before i was eligible for retirement benefits. i think it's important to start asap, especially with the ssa sending newsletters projecting that i can look forward to $760 for every $1000 they took from me (and that figure is for several year's before i hit retirement age)!
amber512 amber512 6 years
Started it yes, actively no.
gumdrops334 gumdrops334 6 years
I just started my first 401K in June of 2010 and have about $1500 in there right now. It's so important!
Nespa002 Nespa002 6 years
I work for Starbucks and fortunately they allow us to have a 401k even for people working just 20 hours a week. I put 17 percent into my 401k investments and then another 30 percent into a personal savings account. I must say I am poor for the time being but not stressing about the future is nice.
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