As a 24-year-old law student, retirement once felt like a distant concept. My focus was on grades, internships, and landing that first full-time job. But during my internship at National Life Group, I realized that understanding retirement planning early is essential—even before your first paycheck.
Why Retirement Planning Matters More Than Ever
Today, Americans are living longer and retiring later. According to the Social Security Administration Life Expectancy Calculator [1], the average life expectancy for a 24-year-old is now 82 years, and if you reach 65, you’re expected to live to 87.
Meanwhile, the average retirement age in the U.S. is 65 for men and 62 for women, though this varies by education and income [2].
That means many of us will spend 20+ years in retirement—a significant period that requires careful financial planning.
The Millennial Retirement Landscape in 2025
Despite economic challenges, millennials are making strides in retirement readiness:
• 58% of millennials are actively saving for retirement
• 40% have saved over $10,000, a strong start compared to previous generations
• However, the average personal savings rate in the U.S. is just 3.97% of disposable income, making it harder to build long-term wealth [3].
Many millennials are also burdened by student loan debt, making it difficult to prioritize retirement savings. But the earlier you start, the more time your money has to grow.
Changing Job Trends = Changing Retirement Strategies
Gone are the days of working 30 years at one company and retiring with a pension. According to the Bureau of Labor Statistics [4], the median job tenure for workers aged 25–34 is now just 2.7 years.
This high turnover means:
• You may have multiple 401(k) accounts from different employers.
• You need to understand rollover options (e.g., into an IRA).
• You must take charge of your own retirement planning.
Smart Retirement Tools for Millennials
Here are a few strategies and tools that can help younger workers build a secure retirement:
- Roth and Traditional IRAs
• Roth IRAs offer tax-free withdrawals in retirement.
• Traditional IRAs offer tax-deferred growth and may reduce your taxable income today. - 401(k) Rollovers
• If you leave a job, consider rolling your 401(k) into an IRA to consolidate accounts and reduce fees.
• First-time homebuyers can withdraw up to $10,000 from an IRA without penalty (though taxes may still apply). - Fixed Indexed Annuities
• These offer guaranteed principal protection and lifetime income.
• They’re especially appealing to millennials who witnessed the 2008 financial crisis and want to avoid market volatility.
The Mindset Shift: From Passive to Proactive
Millennials are more financially aware than ever. We’ve seen the pitfalls of under-saving and the volatility of the market. With the right tools and consistent planning, we can outperform previous generations in retirement readiness.
Final Thoughts
Retirement may seem far off, but the habits you build today will shape your financial freedom tomorrow. Whether it’s contributing to a 401(k), opening an IRA, or exploring annuities, the key is to start now.
“The groundwork is there for our generation’s retirement success. We just need to take the first step.”
Sources
[1] Social Security Administration Life Expectancy Calculator 2025:
[2] Forbes: Average Retirement Age in the U.S.2024:
[3] Statista: U.S. Retirement Saving Statistics 2025:
[4] Bureau of Labor Statistics: Employee Tenure 2024:
A Fixed Indexed Annuity (FIA) is usually a fixed annuity whose interest is determined, at least in part, by the performance of a specified index of the market. Unlike traditional fixed annuities, the policy owner may receive zero interest for a single period on a specific premium payment if the index performs poorly. However, with most designs, the premiums are protected and guaranteed to grow over time, and the owner of a fixed indexed annuity may experience better interest crediting than a traditional fixed annuity during periods when the market performs well. Indexed annuities do not directly participate in any stock or equity investments. An investment cannot be made directly into an index. Most FIAs permit owners to participate in only a stated percentage of an increase in an index, and also impose a “cap rate” that represents the maximum annual account value percentage increase allowed to contract owners. Because they are meant for long-term accumulation, most annuities have surrender charges that are assessed during the early years of the contract if the contract owner surrenders the annuity. In addition, withdrawals prior to age 59 ½ may be subject to a 10% Federal Tax Penalty. The guarantees of annuity contracts are contingent on the claims-paying ability of the issuing insurance company. All withdrawals from an annuity purchased with non-qualified monies are taxable as ordinary income only to the extent there is a gain in the policy. Riders are optional, available at additional cost, and may not be available in all states. Assuming no withdrawals made during the surrender charge period and no rider charges. Rider charges continue to be deducted regardless of whether interest is credited. This is not a solicitation of any specific annuity contract.
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