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When I talk with millennials about growing a retirement nest egg, their eyes tend to glaze over. It is the ultimate “I’ll worry about that later” topic. Believe me, I get it. Most of us cannot even imagine the day when we hang it up. There are so many shorter-term goals our generation is working towards. Those hard-earned paychecks are already flagged for an endless number of needs and wants, with retirement saving often getting pushed to the back of the line.

The danger with putting saving on the backburner? You only have so many years to grow your nest egg by contributing and most importantly by taking advantage of compounding. Without the safety nets of old built into employment, saving for the days when you will not have to work to pay the bills is integral to your future financial flexibility.

Think about the evolution of U.S. employment recently. Not that long ago, most workers stayed in the same profession their entire career. Decades of tenure within a single company was the norm. Pension plans and generous benefits packages were commonplace. Workers often exited the labor force at retirement with a dependable stream of income hitting their bank accounts.

Today, the average American switches jobs every four years, with workers ages 25 to 34 changing every three. Pension plans are becoming almost nonexistent in the private sector. Companies that offer a retirement plan to employees tend to opt for a defined contribution plan instead, leaving young American workers shouldering the responsibility to save, save, save for decades.

Always remember that ideally, when you near retirement age, you would like to have the option to stop working. That does not mean you have to drop out of the professional world. What it does mean is that if you are unable to work, for health reasons, lack of skills, or unforeseen changes in the labor market, you will have the money to live comfortably. The last thing you want is to be forced to leave the workforce with a nest egg that is too small to pay your bills for the entirety of your retirement years.

Even though nest egg growing seems all too easy to push into the future, consider this. The runway between now and the days when you will need those funds gets shorter every year. That is why we created our financial planning process tailored to young professionals determined to take control now.

Here are the go-to saving strategies we urge our clients to utilize every day:

  • Get organized with your finances and cashflows. Simplify, simplify, simplify.
  • Understand exactly where your money goes now.
  • Create a financial plan as a roadmap to your future financial wellness. Get started here.
  • Pay your future-self first each month. Then turn to all those other bills.
  • Set up automated deposits to a retirement account. Increase the amount as you are able.
  • Treat your retirement savings as a 100% off-limits pot of money.
  • Watch your nest egg steadily grow with the power of compounding. Pat yourself on the back for contributing diligently.

The hardest part is making the decision to get started. Rest assured you will be glad you made the effort once you are more organized and have a clear path forward. As always, if we may be of any help in guiding you toward your financial goals, simply reach out.