Retirement Planning in Your 20s

In your 20s, small amounts invested now beat large amounts later. A practical starting playbook: employer match, Roth IRA, and automatic habits.

Why your 20s matter most

The math of compounding rewards time more than money. A dollar invested at 25 can be worth far more at 65 than a dollar invested at 35 — because it compounds for an extra decade.

You don't need a big salary. You need to start, automate it, and leave it alone.

A simple starting order

• Capture the full employer 401(k) match — it's an instant 50–100% return.
• Open a Roth IRA — you pay tax now at a low rate and withdraw tax-free later.
• Build a starter emergency fund of about one month of expenses, then grow it.
• Knock down high-interest debt (credit cards) aggressively.

How much to save

Aim for 10–15% of income, including any match. If that's out of reach, start at 3–5% and raise it 1% every year — most 401(k) plans can do this automatically.

The habit matters more than the number when you're starting out.

Educational information only — not financial, tax, or legal advice. Consider speaking with a qualified professional about your situation.

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