Things You Can Do to Prepare for Retirement in Your 20s

The earlier you start to prepare for your retirement the better, and possibly the sooner you will be able to retire. So, if you’re thinking about how you can get ready for retirement while in your twenties and set yourself up for success in your golden years, here are five great ways to start. There is more to retirement planning than starting a savings account, and some will go against what you have been told your whole life. 

Things You Can Do to Prepare for Retirement in Your 20s

Do Not Go to College

That’s right, do not go to college. Everyone always says to go to college and get a job after that, and that may have worked a generation ago. Today, however, it isn’t usually the way of wealth or success. College costs tens of thousands and sometimes hundreds of thousands of dollars, and years of your adult life. If you have a definite career in mind that absolutely requires a degree, then of course you should pursue that.

However, if you are just trying to get a degree to help you get a job in general, then it is more likely to be a big waste of money and time. Even just going for a year to figure out what you might be interested in is a very costly idea. You can accomplish the same thing by taking aptitude tests or just trying out different jobs, and this will actually gain you money instead. In spite of popular belief, the best way to start out adult life isn’t necessarily with tens of thousands of dollars of debt. So, save yourself the pointless debt and don’t go to college unless you really need to. 

Trade School

However, saying that college isn’t usually a good idea doesn’t mean that education is out of the question when you’re trying to make plans for retirement. Some of the very best paying jobs need some training or education, but not a typical four-year degree. Plumbers, electricians, mechanics and welders are just some examples of really well-paying and satisfying jobs that don’t need a college education. If you learn a trade in your 20s, you will set yourself up for success in retirement by having years of high pay and not starting with loads of debt. 

Live with Your Parents

Enjoy that musty basement as long as you can if it comes with free or cheap rent. So many people in their 20s do not realize how expensive rent or mortgage and utilities are. By getting a job and saving up the money that would be spent on rent for a few years you can get ahead of the game financially. If you work hard and penny pinch for a while, you can save up enough money not just for a down payment on a house, but perhaps all or most of the entire cost.

Imagine paying cash for your first house. This saves hundreds of thousands of dollars’ interest, and if you do not have a house payment, your pay checks are freed up to save for retirement. Plus, you do not need as much income or saved money during retirement if you don’t still have a house payment then. 

Careers with a Pension

There are not as many jobs that come with a pension as a benefit, but there are a few. A pension is a huge benefit if you can get it. Work for a certain number of years, and keep getting paid forever. What a great way to plan for retirement! Some examples of jobs with retirement pensions are teachers, police officers, firefighters, military members, and other government positions. These jobs also often come with a number of other benefits and don’t always need an education to get started. 


While this one isn’t surprising, it is important for anyone who is getting started with preparing for retirement in their twenties. The power of compound interest means that time is more important than money. If you start when you are young, you will not need to put in as much money to get huge returns over time. And, the more time you have, the easier it is to ride the ups and downs of the markets. Most people who start investing in their twenties will have plenty of money for a comfortable retirement. 

Start Working Toward Retirement Now

Whether you are willing to avoid unneeded debt, be frugal or take a job that has the benefits you want, there are plenty of things you can do to plan for retirement while you’re in your twenties. Use any or all of these ideas and you will be all set up for an amazing retirement. All that is left is congratulating yourself for starting your preparations while you are in your twenties.