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Bạn đang xem: I’m a Retirement Planner: 6 Key Signs for Millennials That Your Retirement Is On Track
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As a millennial, you’re not among the youngest generation anymore. And that means your retirement planning should be farther along than that of a young adult’s — you’re at a time in life where you need to know things are on track.
GOBankingRates spoke with Shirley Mueller, founder of VA Loans Texas, and David Milo, financial advisor and owner of Independent Lending, to discuss the signs you’ve made the right choices with all things retirement.
Here’s what millennials can use as an indicator to tout themselves being on the right track.
Assessing Your Retirement Trajectory
“As someone who has worked with millennials navigating both financial planning and homeownership, I often remind clients that the first step in evaluating whether they’re on track for retirement is to get a clear picture of their current savings and goals,” said Mueller. “Retirement isn’t just about hitting a specific dollar amount, it’s about aligning your financial plan with the life you envision in the future.”
For many millennials, she said this includes homeownership, which can act as both a stable living arrangement and a valuable asset in retirement.
“Start by calculating how much you’re saving annually and compare it to your anticipated retirement needs.”
Tools like retirement calculators can be helpful, but she advised working with a trusted advisor to provide deeper insight into whether your strategy aligns with your lifestyle goals.
Homeownership as Part of Your Retirement Plan
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According to Mueller, for millennials, investing in a home early on can be a critical piece of their retirement strategy.
“A home doesn’t just offer stability, it’s also a long-term asset that often appreciates over time,” she said.
She noted that paying off a mortgage before retirement can significantly reduce your cost of living later in life, freeing up funds for travel, healthcare or other goals.
“I’ve seen clients in their 30s who prioritize buying a home and see how that equity builds into their financial security.”
If you’re not already a homeowner, she said to consider exploring first-time homebuyer programs or leveraging VA loans if you qualify.
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“These opportunities can make entering the housing market more accessible, providing a foundation for long-term wealth.”
Balancing Retirement Savings and Immediate Goals
“Of course, homeownership is only part of the equation, you still need to focus on building retirement accounts like 401(k)s and IRAs,” said Mueller.
She observed that millennials often face challenges like student loan debt or fluctuating income from gig work, but that prioritizing consistent contributions, even in small amounts, adds up over time.
“If you’re unsure where to start, I encourage clients to aim for at least 15% of their income toward retirement savings, including employer matches.”
She said that regularly reviewing your progress and making adjustments as your circumstances evolve is key.
“Ultimately, retirement planning is about balance. Saving for the future while making smart decisions today that pave the way for financial freedom.”
Regular Saving for All Self-Earning Individuals
“For every financial match, an individual saving 15% of their income and 20% if they do not self-employ their business — funds will work,” said Milo.
Keeping constant reserves no matter if the first ones are low, he noted, will provide ample benefits.
“Schedule your savings to ensure they get the priority they deserve.”
Retirement’s Calculated Projection
According to Milo, you should employ a retirement calculator to see if the amount of money and the rate at which you are putting money into your employment matches what you want to achieve in the future.
Example: A millennial who begins saving $400 a month at the age of 25 and has a $1 million savings account at 65 (with 7% yearly growth).
Cost and Debt Management
“Maintain a low level of high-interest debt in order to be able to save more,” said Milo. “Every dollar that is left over after spending is saved and used for a retirement program.”
A great opportunity for millennials, he said, would be to concentrate on professional advancement and having more than one source of income.
“People should focus on building themselves, acquiring skills that enhance their earnings that will help in making greater contributions for a secure retirement.”
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