--- title: How Millennials Can Save for Retirement description: It’s best to start saving as early as possible for retirement, here are some ways that millennials can save for retirement. image: https://rmcu.net/hubfs/RMCU-How-Millennials-Can-Save-for-Retirement-blog-1.jpg --- [![RMCULogoColor.jpg](https://rmcu.net/hubfs/RMCU-logo.svg "RMCULogoColor.jpg")](https://rmcu.net) [Online Banking Login](https://banking.rmcu.net/auth/signin) [Online Banking Login](https://banking.rmcu.net/auth/signin) [![RMCULogoColor.jpg](https://rmcu.net/hubfs/RMCU-logo.svg "RMCULogoColor.jpg")](https://rmcu.net) - - [Home Loans](https://rmcu.net/home-loans) - [Personal](https://rmcu.net/personal) - [Business](https://rmcu.net/business) - [Membership](https://rmcu.net/membership) - [Careers](https://rmcu.net/membership/about-rmcu/careers) - [Contact Us](https://rmcu.net/contact-us) - Search - [Financial Education ▾](https://rmcu.net/blog/how-millennials-can-save-for-retirement#financial-education-nav) - [About RMCU ▾](https://rmcu.net/blog/how-millennials-can-save-for-retirement#about-rmcu-nav) - [Security](https://rmcu.net/membership/security) - [TruStage: Security Alert](https://rmcu.net/trustage-security-alert) - [Money Mastermind](https://rmcu.net/money-mastermind-lessons) - [Financial Counseling](https://rmcu.net/financial-counseling) - [Savvy Money](https://rmcu.net/membership/financial-education/savvy-money) - [Blog](https://rmcu.net/blog) - [Resources](https://rmcu.net/resources) - [RMCU Team](https://rmcu.net/membership/about-rmcu/rmcu-team) - [Member Information](https://rmcu.net/membership/about-rmcu/member-information) - [Annual Meeting](https://rmcu.net/membership/about-rmcu/annual-meeting) - [Community](https://rmcu.net/membership/about-rmcu/community) - [Our History](https://rmcu.net/membership/about-rmcu/history) [back to blog](https://rmcu.net/blog) [Budgeting and Saving](https://rmcu.net/blog/topic/budgeting-and-saving) # How Millennials Can Save for Retirement Read Time **3 mins** | Written by: Rocky Mountain Credit Union [mailto:?subject=How%20Millennials%20Can%20Save%20for%20Retirement&body=https%3A%2F%2Frmcu.net%2Fblog%2Fhow-millennials-can-save-for-retirement](mailto:?subject=How%20Millennials%20Can%20Save%20for%20Retirement&body=https%3A%2F%2Frmcu.net%2Fblog%2Fhow-millennials-can-save-for-retirement) ## Take advantage of 401(k) matching if you can Pension plans are falling by the wayside, with more and more companies turning to defined contribution plans like 401(k)s instead. Be sure to save with your employer’s 401(k) if it’s an option, and max out any employer match that’s available too. For every dollar you’re saving that gets an employer match, you’re already seeing a 100% return on your investment before you even put it into the markets. You don’t want to leave money on the table, so prioritize maxing out your match each year.  ## Try to save a higher percentage of your income Many people save 10% of their income for retirement, but even that may be undersaving for millennials with an uncertain social security payout. Aim for 12-15% of your income to go to retirement savings accounts if you can. That may seem like a lot to part with from each check, but drawing up a budget may help. And it’s all money you’ll see again in the future.    ![401K](https://rmcu.net/hs-fs/hubfs/RMCU-How-Millennials-Can-Save-for-Retirement-blog-2.jpg?width=2894&height=1929&name=RMCU-How-Millennials-Can-Save-for-Retirement-blog-2.jpg) ## Open a Roth IRA A 401(k) is just one way to save for retirement. And not every job even offers one. If you want to save more or start saving without an employer-sponsored plan, a Roth IRA might be a good option. [Roth IRAs](https://www.irs.gov/retirement-plans/roth-iras) are tax-advantaged retirement accounts that allow you to make deposits after taxes. But then you don’t need to pay taxes on the money you withdraw, as long as you take it out after you reach age 59 ½. This is a good option if you expect to be in a higher tax bracket when you retire.  ## Think about a traditional IRA too If you expect to be in the same tax bracket or a lower one when you retire, a [traditional IRA](https://www.irs.gov/retirement-plans/traditional-iras)might be a good option for retirement savings. This is also a tax-advantaged retirement account, but in this case, you make deposits before you pay taxes on the money. Unlike a Roth, though, you pay income taxes on the money you withdraw, and you have to start taking money out at least after you hit age 72. Depending on your circumstances now or what you imagine they’ll be in the future, this could be a good option for millennials saving for retirement.    ![Woman with a calculator budgeting. ](https://rmcu.net/hs-fs/hubfs/RMCU-How-Millennials-Can-Save-for-Retirement-blog-3.jpg?width=2894&height=1929&name=RMCU-How-Millennials-Can-Save-for-Retirement-blog-3.jpg) ## Put away a little extra each month in an HSA Even if you’re busy paying off student loan debt or covering the costs of your mortgage and you can’t imagine being able to save 15% of your income for retirement right now, that’s okay. Try to put away a little extra from each paycheck into a [health savings account](https://www.healthcare.gov/glossary/health-savings-account-hsa/) if you qualify by having a high-deductible health plan. This tax-advantaged account can be used now for medical expenses, or you can take advantage of extra savings possibilities if you’ve already maxed out your annual Roth IRA contributions. Even if it’s $20 or $100 more each month, you have the advantage of time on your side. Every dollar you save can help pay medical costs in retirement too.    When you need those long-term savings accounts, it makes sense to go with a community credit union you trust. As an RMCU member, it’s easy to open an account online. And if you’re not a member, you can also apply from the comfort of your computer or go to your nearest branch. [Sign up,](https://www.rmcu.net/membership)and start saving.  ##### Rocky Mountain Credit Union Share the Love [mailto:?subject=How%20Millennials%20Can%20Save%20for%20Retirement&body=https%3A%2F%2Frmcu.net%2Fblog%2Fhow-millennials-can-save-for-retirement](mailto:?subject=How%20Millennials%20Can%20Save%20for%20Retirement&body=https%3A%2F%2Frmcu.net%2Fblog%2Fhow-millennials-can-save-for-retirement) You May Like These ## Related Articles ![](https://rmcu.net/hs-fs/hubfs/Blogs/Planning%20for%20retirement%20starts%20now.jpg?width=700&name=Planning%20for%20retirement%20starts%20now.jpg) Tips from the Pros ### [Planning for Retirement Starts Now!](https://rmcu.net/blog/planning-for-retirement-starts-now) It can be difficult to know which retirement plan is best for you, so we put together a list of comm... Keep Reading ![](https://rmcu.net/hs-fs/hubfs/Blogs/Is%20It%20Better%20to%20Pay%20Off%20Debt%20or%20Save%20for%20Retirement.jpg?width=700&name=Is%20It%20Better%20to%20Pay%20Off%20Debt%20or%20Save%20for%20Retirement.jpg) Tips from the Pros ### [Is It Better to Pay Off Debt or Save for Retirement?](https://rmcu.net/blog/should-you-pay-off-debt-or-save-for-retirement) Don't get stuck debating whether you should pay off debt or save for retirement. It's key to make a ... Keep Reading ![](https://rmcu.net/hs-fs/hubfs/RMCU_career-benefits-blogHeader.jpg?width=700&name=RMCU_career-benefits-blogHeader.jpg) Lender Spotlight ### [6 Benefits of a Career at Rocky Mountain Credit Union](https://rmcu.net/blog/6-benefits-of-a-career-at-rocky-mountain-credit-union) When you work at Rocky Mountain Credit Union, you benefit from more than just a paycheck, you get re... 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