Financial Glow-Up: The Ultimate Retirement Savings Guide for Gen-Z

For many Gen-Zs, retirement might seem like a far-off concept—something to worry about later. However, starting to save for retirement early can make a huge difference in financial security down the road. With factors like inflation and the rising cost of living, learning to save and be financially smart now can help you build a comfortable future without the stress. Let’s explore why saving is so important and how you can get started today!

Why Saving for Retirement Matters

Retirement savings are essential for ensuring you have enough money to live comfortably after you stop working. Starting early gives your money more time to grow. Even small contributions can add up over the years, making a big impact when it’s time to retire. According to Plinqit’s 2024 State of Savings report, less than a third of Americans are currently saving for retirement​, however, Gen-Z is showing an unprecedented dedication to saving for retirement by starting young and saving consistently. Gen-Z gets it, and we are proud of these young people for taking these important steps so early!

Saving Smarter not Harder

While Gen-Z is the generation likely to be saving up to 20% of their monthly household income, and overwhelmingly engaging with either a workplace retirement fund, or their own savings account, they’re doing things in a non-traditional fashion (2024 SoS). We love going the non-traditional route with a lot of things, but saving isn’t necessarily one of them.

For example, many Gen-Z savers are utilizing cryptocurrency to amplify their savings. And while strategic investment can be a great option for people looking to make additional income, it’s not smart to keep something as important as your retirement tied up in an investment that could turn at any time. Keeping your retirement in an FDIC or NCUA-insured institution is the only way to ensure 100% that your hard-earned money is safe.

Ways to Start Saving Sooner Rather Than Later

1. Open a Retirement Account: Consider opening a retirement account, like a 401(k) or Roth IRA. These accounts offer tax advantages that can help your savings grow faster. If your employer offers a 401(k) match, take full advantage of it.
2. Automate Your Savings: Setting up automatic contributions to your retirement account can make saving easier. You won’t have to think about it, and the money will add up overtime without extra effort. (Pssst… our Plinqit app does this for FREE!) 
3. Start Small and Increase Over Time: If you’re not sure how much to save, start with a small percentage of your income, like 5%. As your career progresses and you earn more, try to increase that percentage. The earlier you start, the less you’ll need to save each month to reach your goals. Don’t worry, you’ve got time! Just start with what you can for now.
4. Investing for the Future: Investing a portion of your retirement savings can help combat inflation. However, you need to make sure you’re doing your research, consulting a professional, and try not to hop on trends without doing your due diligence. And remember, never invest all of it. Not worth the risk!

Gen-Z Gets It: Retirement is the Ultimate #LifeHack

The earlier you start saving, the more control you’ll have over your financial future. Even if you can only save a small amount now, getting into the habit is what matters. As you grow your career and income, those habits will make it easier to increase your contributions. Remember, your future self will thank you for the effort you put in today!