Retirement planning in your 20s

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Retirement planning isn’t for those 50 and older. If you’re in your 20s and haven’t started to save for retirement, it’s time to put away a portion of that next paycheck for the future. Investing wisely at a young age allows you to put away a moderately low amount of money per year while maximizing your savings in the long run.

Start saving now

The “planning” part of retirement planning can seem like a daunting task, but it doesn’t take much to start saving. If you’re eligible, sign up for the 401(k) at your place of work as soon as possible. Because it’s automatically deducted from your paycheck, you won’t miss the money. Many employers will match a percentage of your contributions, typically 3 percent, but you usually need to save enough to get the match.

If your company doesn’t offer a retirement plan of any kind, sign up for a Roth IRA. No matter which retirement planning method you use, save as much as you can on a monthly basis. Use Bankrate’s retirement calculator to get an idea of how much money you’ll need to save each year to reach your retirement goals.

Retirement planning education

Retirement planning can be daunting. Fortunately, there are plenty of resources available on the subject, including Bankrate’s retirement blog. Companies also sometimes offer their workers access to investment advisers. For more information, read Bankrate’s section dedicated to retirement planning.