A College Graduate’s Guide to Retirement Savings

As you graduate college and begin your career, retirement might be the last thing on your mind. However, as you settle into your first post-grad job, it’s never too early to begin preparing for your future.

At ePlan Services, we know that retirement planning is highly individual. We’re here to provide some basic tips on kickstarting your retirement savings journey, so you can make educated decisions about your financial life.

Benefits of Kickstarting Your Retirement Savings Post-Grad

Everyone starts saving for retirement at different times. Some may want to get a jumpstart on student loan repayments prior to contributing to a retirement account. Others might contribute to an employer-sponsored account right away or wait until they’re established in their career.

Ultimately, when to open a retirement account is your choice. But there are several key benefits to starting right after college.

Maximize your retirement savings.

When it comes to retirement savings, there are no guarantees. However, by investing early, time will be on your side. The funds in your retirement account will have more time to compound, potentially resulting in a higher amount when you retire.

Remember that your strategy will be unique to your financial situation, so consider meeting with a professional (such as a financial advisor) to discuss the best investment plan for you.

Get in the habit of contributing.

As with any type of savings strategy, budgeting for retirement savings is a habit. If you decide to start contributing now, you’ll grow accustomed to a portion of your paycheck going toward retirement. For some, investing this money from the beginning of your career may be easier than starting years later.

Learn about investing from the get-go.

Many people don’t learn about investing or retirement planning in school, which means they’re starting from scratch when they graduate. Contributing to a retirement account at a young age gives you an opportunity to learn about investing. Whether you do your own research or take an online class, you can learn how your retirement account works.

Retirement Savings: Tips for Getting Started

Thinking about opening your first retirement account post-grad? There are several paths you could take. Again, meeting with a financial advisor may provide an extra level of insight. However, here are some general tips to get you started.

Enroll in your employer’s 401(k) plan.

If your first job after graduation offers a 401(k) plan, enrolling can be one of the most straightforward ways to start saving for retirement. When you enroll in a plan, you’ll decide how much of your paycheck you want to contribute to the account. Your employer may also offer perks like 401(k) employer match or profit sharing.

Balance retirement savings with other financial goals.

Every college graduate has a unique financial situation, as well as different plans for the future. For you, retirement savings may be a significant priority. Or it may take a backseat to other financial plans, such as buying your first home or paying off debt. The full picture of your financial goals may determine which type of retirement account you open and how much you contribute each month.

Start thinking long term.

When graduating college, the immediate future is likely your top priority. Finding your first job, establishing yourself in a new city, or even taking a post-grad trip may be part of your plan. However, it’s never too early to start thinking long term and consider which financial decisions will help you achieve your future goals.

Whether you’re enrolling in your first employer-sponsored 401(k) plan or starting your own business, ePlan Services has the guidance you need to make informed financial choices. We’ve designed our suite of 401(k) products and resources with everyone in mind. Have questions about your plan? Visit our Help Center or get in touch with our team.

This content is for educational purposes only, is not intended to provide specific legal advice, and should not be used as a substitute for the legal advice of a qualified attorney or other professional. The information may not reflect the most current legal developments, may be changed without notice and is not guaranteed to be complete, correct, or up-to-date.