Welcome to the real world, college graduates.
Saving for retirement is probably near the bottom of your financial to-do list, after paying the rent, making student loan payments and trying not to spend all of your free cash on takeout food and Uber rides. But opening a retirement account in your early 20s is a major part of “adulting” and can have lots of financial benefits.
If you start saving now — even just a little — you give your money a better chance of growing in the stock market over time, says Rachel Rabinovich, a financial planner for the Society of Grownups, a financial company that helps millennials learn the basics of managing money. (Investing also can come with risks, but for long-term goals such as retirement, you would have plenty of time to make up for any losses you might see in the near term, financial experts say.)
Here are some tips from personal finance experts about what you should do to make saving for retirement as easy as possible.
• Start right away. Adjusting to a new job can be overwhelming, but don’t use that as an excuse to push aside your 401(k) paperwork, financial experts say. Take care of your retirement account at the same time that you are tackling other essential work tasks, such as choosing a health plan, says Rebekah Barsch, vice president of planning for Northwestern Mutual. That way you can get used to having the retirement contributions deducted from your paycheck early on before you can even tell that the money is missing, she says.