Retirement Tips for Millennials

The retirement topic probably seems premature to discuss at this age right?

Retirement gives millennials the illusion of being far away which leads to putting off planning. This is an oversight however. Retirement planning should go into effect soon as possible. The earlier you plan the more enjoyable retirement will be.

Everyone wants to retire and live out his or her golden years on the beach drinking a pina colada but as history shows life doesn’t go according to plan.

What does it take to have a successful retirement? Having a million dollars in the bank? Figuring out which investment vehicles to use? When to start investing? Being debt free? Picking which island to retire to?

All these questions are essential when it comes to retirement. But the forgotten questions are never answered or come across a millennials head. What about the other important questions? What does retirement look like? Will I leave money for children? How long will I be retired? Will my health hold me back? Where will I live? Who will be spending my retirement with me? What will be my monthly spending?

Some questions are hard to answer and others easy. Either way, it is important to begin answering these questions and planning for what you can.

Here are some tips to assist you when it comes to planning for retirement.

Start Saving Early

The elephant in the room is why don’t Millennials take advantage of time and start saving for retirement. Americans typically earn their peak income from ages of 40 – 55. Though you may not be there yet, you can start by setting aside 3% – 5% monthly to automatically transfer to a compound interest account. A small percentage will most likely not be missed in your daily budget. The closer you become to retirement age the more money you need to stash away. If you end up having too much money then bravo for you!!! Spend the extra or give it away to whomever you please. My point here is better too have too much than too little. Begin saving whether it’s $25 or $100 a month.


401(k) Company Matching

Financial advisors consistently preach that clients don’t take advantage of their company-matching program. Why leave free money on the table? Americans lose thousands of retirement dollars by not matching the company’s contribution program. Rule of thumb is to set paycheck withdrawals to the percentage that the company matching program provides. For example: My company provides 6% matching. Therefore, I set my minimum withdrawal percentage to 6% to ensure I meet the company’s matching. Best believe I do not leave free money on the table! Review your 401(k) to double check you are on track to max out the company-matching program.

Plan for Medical Cost

Americans don’t have the same high respect for elders as Japan culture does. So do not expect for children or spouses to take care of you medically. Often, family is not financially prepared to stay home and take care of family members. Other times a family does not have money for a home nurse or nursing home. Take self-responsibility for your health so nothing disturbs your retirement plan.

Even though you are usually healthier the younger you are, you can benefit just by knowing about how long-term car insurance works. Click here to read more on what it can cover.


Staying Healthy

As we grow up it becomes more important to take care of yourself. Women tend to do much better versus their sex counter part. There are reasons why women live on average 5 -10 years longer then men. They check their bodies more frequently, visit the doctor annually and watch what goes into their bodies. You already know health costs will take huge bites into your nest egg. But think of this as well. Do you want to spend retirement sick in a bed? I sure as hell don’t! I want to enjoy my retirement and have fun. That means taking care of the body now to enjoy life later.


*climbs on soap box*

Men we need to do better when it comes to taking care of ourselves. The days of eating pizza, cake and drinking beer need to be left in the past. We HAVE to start visiting the doctor’s annually and yes that means getting a prostate exam. *shivers*
I went to the doctor’s office this year for the first time in a decade and diagnosed with high blood pressure! It’s better to know now then later. Take charge of your health and man up on your ride to the doctor’s office.



Retirement Daydreaming

While reading David Bach’s book “Smart Couples Finish Rich”, he wrote about how his clients had no visual for retirement life. Clients made it to the retirement age but didn’t know what they wanted to do. Married couples had opposite retirement living plans that were far different from their counterparts.

No need to start doing a retirement vision board, unless you are close to retirement, but try to daydream about retirement. Figure whether you see yourself inside the U.S.A. or in Brazil.

My wife wants to buy an RV and drive over the country. I want to work a bunch of odd jobs and quit whenever I feel tired. Start dreaming of what retirement looks like for you, this will help when it comes to planning how much money will be needed for retirement.


Speak to a Qualified Financial Advisor

The concept of needing to be worth a million dollars in order to talk to a financial planner is no longer true. You can professionals that work based on a set fee and work with all incomes. Invest in your retirement by consulting with a qualified financial planner. A planner will be able to make a comprehensive financial plan for you based on your retirement and short-term goals. In addition, a planner will be able to calculate your retirement path and provide financial insight. In the long run making this investment can save you thousands when it comes to retirement.

A qualified advisor can hold a CFP, CFA or have the financial experience. Do your due diligence before making your selection.


Be proactive with retirement no matter what stage you are at in life. The earlier you plan the easier retirement will be to obtain.

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  1. Thanks for the post! Your retirement tips here focus on building a well rounded plan, HAVING A VISION that combines short and long term goals, and finding ways to execute on the plan. I think saving more medical costs is an underrated financial advice tip. Unexpected health items are going to happen and can be brutal if you don’t have savings on hand to address, it can be crippling. Luckily for me, I haven’t had to experience this but I have seen family hit with the unplanned for medical bill. The government provides you with a nice tax incentive with your HSA to start building your health savings account and it is something that I didn’t start taking advantage of until this year.


    1. Couldn’t agree anymore Bert. Working in insurance I see people hit with medical bills that no one really sees coming so saving for an HSA is an underrated tip I don’t hear much of. I myself need to catch up on my contributions as well. Thanks for stopping by and dropping that knowledge.

  2. Great tips!! And so good to stress to men that they need to take care of themselves.

    Also, one of the things I wished I would’ve did earlier was invest more in my company 401k when I first started working, but hindsight is 20/20

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