Gen Z does not need a large retirement balance to get ahead financially. Instead, starting early, saving consistently, and allowing decades for investments to compound can make even modest contributions meaningful over time. That’s the topic of a recent Yahoo Finance article titled, “Gen Z: How Much Retirement Savings Puts You Ahead of Your Peers,” by journalist Jordan Rosenfeld.
Our Chief Investment Officer and CEO, Steven Rogé, emphasized that setting aside almost any amount for retirement can put someone in their 20s ahead of many of their peers. With young adults often balancing student loans, car payments, housing costs, and other immediate priorities, simply getting started is an important first step.
Steven also discussed the value of saving a percentage of income rather than focusing solely on a fixed dollar amount. A percentage-based approach allows retirement contributions to increase naturally as earnings rise. He illustrated the long-term impact with an example showing that saving $500 per month beginning at age 25 could potentially grow to more than $1 million over 40 years, assuming a 7% average annual return, even without increasing the monthly contribution.
Beyond retirement accounts, Steven encouraged young adults to invest in their own earning potential. Additional education, professional certifications, and other career development opportunities may temporarily compete with retirement savings, but they can lead to greater income and financial opportunities in the years ahead.
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R.W. Rogé & Company, Inc. is an independent, fee-only financial planning and investment management firm serving clients locally and virtually across the country, with Long Island, New York, and Beverly, Massachusetts office locations. R.W. Rogé & Company, Inc. was founded on a “client first” culture and proudly commits to acting in your best interest as a fiduciary. We have helped clients Plan, Achieve, and Live® the life they want since 1986. To learn more about how we do this, as well as our process, explore our detailed overview of services and approach.
