The earlier you start, the easier it gets.
Retirement might seem a lifetime away when you’re in your 20s or 30s—but that’s exactly why it’s the perfect time to start saving. While your day-to-day priorities may include paying off student loans, saving for a house, or building your career, it’s important not to overlook your future self.
At People Driven Credit Union, we believe that smart saving today leads to freedom, flexibility, and financial peace tomorrow.
Time is Your Greatest Asset
The earlier you begin saving for retirement, the more time your money has to grow. Thanks to compound interest, even small contributions made in your 20s can turn into a significant nest egg by the time you retire.
Let’s say you invest just $100 a month starting at age 25, and your investment earns an average of 7% annually. By the time you turn 65, you could have over $240,000—all from contributions totaling less than $50,000.
If you wait until age 35 to start saving the same amount? You’ll end up with only about $120,000 by age 65.
Why It Pays to Start Now
1. Smaller Contributions Go a Long Way
When you have more time, you don’t need to set aside huge amounts to make a big difference.
2. You Build the Habit
Starting young makes saving second nature. The earlier you form the habit, the easier it is to stick with it—even as life gets more complex.
3. You Have More Flexibility Later
The more you save early on, the less pressure you’ll feel in your 40s and 50s. That means more freedom to travel, switch careers, or retire early.
4. Life is Unpredictable
Job changes, health concerns, and family needs can all impact your ability to save later. Getting ahead while you can gives you a cushion when life throws a curveball.
Tips for Getting Started in Your 20s and 30s
- Start Small, But Start Now: Even $25–$50 a month is a powerful beginning.
- Take Advantage of Employer Plans: If your employer offers a 401(k) with matching, contribute at least enough to get the full match—it’s free money.
- Open an IRA: If you don’t have access to a 401(k), consider opening a Traditional or Roth IRA.
- Automate Your Contributions: Set it and forget it. Auto-deposits make saving easy and consistent.
- Increase Over Time: As your income grows, bump up your retirement contributions—even by 1% each year.
PDCU Can Help You Plan for Tomorrow
We offer retirement savings options like IRA Certificates and Money Market IRAs to help you grow your savings at your own pace, with flexible terms and competitive rates.
Whether you’re just starting out or looking to fine-tune your retirement strategy, we’re here to help with tools, guidance, and products designed for your goals.
Ready to Start Saving for Your Future?
Visit one of our branches, contact us, or learn more online about saving for retirement and start building a more secure tomorrow—today.
