{"id":21079,"date":"2025-12-16T12:04:40","date_gmt":"2025-12-16T18:04:40","guid":{"rendered":"https:\/\/www.discover.com\/online-banking\/banking-topics\/?p=21079"},"modified":"2026-02-04T15:48:01","modified_gmt":"2026-02-04T21:48:01","slug":"gen-z-retirement-planning","status":"publish","type":"post","link":"https:\/\/www.discover.com\/online-banking\/banking-topics\/gen-z-retirement-planning\/","title":{"rendered":"Gen Z retirement planning: Simple steps to start saving"},"content":{"rendered":"\n

If you\u2019re like many members of Gen Z, saving for retirement can feel like a challenge. In fact, only one in five is setting aside any money for retirement, according to the TIAA Institute.<\/a><\/p>\n\n\n\n

The reality is if you\u2019re juggling things like high rent and student debt while earning entry-level wages, you probably have minimal cash to spare. However, time is on your side. Here\u2019s how to start saving for retirement early in your career, even if you\u2019re on an extremely tight budget.<\/p>\n\n\n\n

Why should Gen Z start saving for retirement early?<\/h2>\n\n\n\n

When you\u2019re in your 20s, retirement can feel like a lifetime away. However, the earlier you start saving for retirement<\/a>, the better. Thanks to the power of compound interest<\/a>, even seemingly small contributions can grow exponentially over time.<\/p>\n\n\n\n

Consider an example: Someone who saves just $100 per month starting at age 21 could accumulate over $239,000 by age 65, assuming a 6% rate of return. Pretty amazing, right?<\/p>\n\n\n\n

However, if they waited until age 30 to start saving, they\u2019d have to contribute nearly double that each month to reach the same amount by age 65.<\/p>\n\n\n\n

Here\u2019s the deal: As far as Gen Z retirement, the sooner you start, the better off you\u2019ll be. By making small contributions today, you can significantly boost your savings in the long run.<\/p>\n\n\n\n

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Where should you put your retirement savings?<\/h2>\n\n\n\n

Where you save your money can be as important as how much you set aside. Different types of long-term savings options<\/a> are available, including certificates of deposit (CDs) and tax-advantaged retirement accounts. All offer the ability to earn interest while keeping funds locked away\u2014an added bonus if you\u2019re tempted to spend your spare dollars\u2014but \u00adthe right choice will depend on your goals and financial situation.<\/p>\n\n\n\n

CDs are typically a good fit if you\u2019re saving for a tangible goal with a set budget, like a down payment on a condo or wedding expenses. CDs tend to offer highly competitive rates that are locked in for a set term, making them a solid way to save for targeted goals\u2014as long as you don\u2019t need immediate access to those funds.<\/p>\n\n\n\n

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But when it comes to the longer-term goal of retirement, tax-advantaged accounts are usually the way to go. They typically have more growth potential than regular savings accounts or CDs, and unlike traditional investment accounts, they offer tax perks designed to help your savings go even further.<\/p>\n\n\n\n

One of the most common tax-advantaged retirement accounts is a 401(k), which many employers will offer as part of their benefits package. Companies often match up to a certain percentage of your contributions, though terms vary.<\/p>\n\n\n\n

Individual retirement accounts (IRAs) are another popular choice. IRAs\u2014both traditional and Roth options\u2014are available to anyone with taxable income. <\/p>\n\n\n\n

4 easy ways to start saving for retirement today<\/h2>\n\n\n\n

Getting into the habit of saving for retirement now makes it easier to stay on track in the future. Here are four simple ways to start growing your retirement fund<\/a>.<\/p>\n\n\n\n

1. Make a budget<\/h3>\n\n\n\n

A solid budget is key to determining how much you can set aside for retirement each month without sacrificing your financial stability. There are many budgeting methods to choose from, but if you\u2019re new to budgeting, the 50-20-30 rule<\/a> could be a great place to start.<\/p>\n\n\n\n

2. Open a tax-advantaged retirement account<\/h3>\n\n\n\n

If you have a full-time job, find out if your employer offers a 401(k). If not, consider opening an IRA instead. These accounts offer major tax benefits and are easy to set up, making them a good option, especially for freelancers and part-time workers.<\/p>\n\n\n\n

3. Max out your employer match<\/h3>\n\n\n\n

Many companies will match a percentage of your contributions, essentially giving you free retirement money. If your job offers a 401(k) match, do your best to contribute enough to receive the full company contribution\u2014it\u2019s one of the easiest ways to supercharge your savings.<\/p>\n\n\n\n

Companies have different terms for when they fully \u201cvest\u201d your retirement funds\u2014giving you sole ownership of the amount of matched funds from your employer. Just make sure you\u2019re aware of your company\u2019s specific requirements, especially if you\u2019re considering a job move.<\/p>\n\n\n\n

4. Automate your savings<\/h3>\n\n\n\n

Make saving effortless by setting up automatic transfers<\/a>. Start by scheduling a fixed amount to go into your savings account each month\u2014treating it like a non-negotiable bill. (Remember that compound interest example?) Most 401(k)s allow you to contribute a percentage of each paycheck. If you\u2019re using an IRA, check with your bank to see if you can set up automatic transfers from your checking account. <\/p>\n\n\n\n

Small steps can add up\u2014big time<\/h2>\n\n\n\n

For Gen Z, saving for retirement can seem tough, but getting into the saving habit early gives you a huge advantage. Even small steps\u2014like sticking to a budget<\/a>, opening a retirement account, and automating contributions\u2014can put you on the path to financial security. <\/p>\n\n\n\n

Articles may contain information from third parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third party or information.<\/p>\n\n\n\n

The information provided herein is for informational purposes only and is not intended to be construed as professional advice. Nothing contained in this article shall give rise to, or be construed to give rise to, any obligation or liability whatsoever on the part of Discover, a division of Capital One, N.A., or its affiliates.<\/p>\n","protected":false},"excerpt":{"rendered":"

Even small contributions can have a major impact on Gen Z saving for retirement. Follow these tips to grow your money for the future.<\/p>\n","protected":false},"author":15,"featured_media":22733,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7,89],"tags":[114,112,117,130,32,27,103],"class_list":["post-21079","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retirement","category-saving-for-retirement","tag-401k","tag-cd","tag-compound-interest","tag-long-term-saving","tag-online-savings-account","tag-saving-for-retirement","tag-starting-out"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/posts\/21079","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/comments?post=21079"}],"version-history":[{"count":10,"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/posts\/21079\/revisions"}],"predecessor-version":[{"id":22734,"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/posts\/21079\/revisions\/22734"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/media\/22733"}],"wp:attachment":[{"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/media?parent=21079"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/categories?post=21079"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/tags?post=21079"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}