How to Save for Retirement as a Millennial

Retirement Piggy Bank

Millennials, people reaching young adulthood in the 21st century, are reportedly not saving as much for their retirement as previous generations. A recent study conducted by, found that 44 percent of millennial aged women spent more on coffee than they put aside for savings. Many millennials are strapped with student loan and credit card debt payments, are choosing to start saving later in life for marriage and raising kids, and may have not received proper education in managing finances. Other surveys suggest that millennials focus on short-term goals rather than long term, and take jobs at startups or small businesses as independent contractors that do not offer retirement plans. Keep reading for some tips on how to start a savings account as a young adult.

3 Tips for Saving for Retirement as a Millennial

  • Start budgeting: Most millennials have little or no savings to start with. Start managing how much you spend on which items, to allow for some leftover money. Come up with a monthly savings target to hit. Many online banking apps have budgeting features that show you what items your spending the most on, and there are a multitude of online tools and resources to help you on your path to budgeting.
  • Invest your savings: According to, saving $100 a month and investing in the stock market, starting at age 25, will add up to $248,551 by age 65, at a 7 percent annual return rate. Many millennials do not use their company sponsored 401ks, or their company doesn’t provide one. There are other options like direct stocks, mutual funds, and government bonds. Partnering with a financial services provider or debt management attorney can get you started on the right path.
  • Declare bankruptcy: Just last week, Maryland House Representative John Delaney introduced a bill that would allow excessive student loan debt to be dismissed in bankruptcy. If your debt is extreme, this can be the best way to handle some your debts so you can start making positive gains again.

Millennials have a lot to juggle, including student loans, credit cards, stagnant wages, and increasing costs of living. If you are in serious debt, bankruptcy could be the best option for you. Although bankruptcy will stay on your credit report for up to 10 years, the effect of accumulating debt you cannot pay is much worse. Washington, D.C. bankruptcy attorney Kevin D. Judd has experiencing getting a fresh start for many with complex debt cases.

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