---
title: 'In your 20s? Here''s how to start retirement saving now'
source: 'https://youtube.com/watch?v=iiMDvFHqh_Y'
video_id: 'iiMDvFHqh_Y'
date: 2026-06-28
duration_sec: 274
---

# In your 20s? Here's how to start retirement saving now

> Source: [In your 20s? Here's how to start retirement saving now](https://youtube.com/watch?v=iiMDvFHqh_Y)

## Summary

The video features personal finance educator Tiffany Aliche (the Budgetnista) discussing retirement saving strategies for young people. She emphasizes starting early, even with small amounts, and prioritizing employer matching before maxing out a 401(k). The conversation covers common pitfalls, such as not choosing investment accounts, and offers practical advice for those with limited income.

### Key Points

- **Retirement savings gap** [00:07] — Americans have saved only 78% of the amount they'll need for retirement.
- **Priorities before maxing 401(k)** [00:50] — Before maxing out a 401(k), consider health insurance, saving for a down payment, paying off high credit card debt, and life insurance. Also consider a Roth IRA.
- **Get the employer match** [01:25] — Always contribute at least enough to get the employer match – it's free money.
- **Start saving in your 20s** [01:49] — Start saving in your 20s, even with a small amount. Create the habit of increasing savings with every raise.
- **Use free advisor and avoid touching savings** [02:13] — Use the free financial advisor that often comes with a 401(k). Leave retirement money alone to benefit from compound interest.
- **Choose your investments** [02:33] — A common mistake is not choosing where contributions are invested; many leave money in a money market account and miss out on growth.
- **Increase income and adjust expectations** [03:08] — If you can't save much, focus on increasing income (side hustles, budgeting) and consider that retirement may include part-time work.
- **Retirement pitfalls: healthcare and housing** [03:57] — In retirement, watch for rising healthcare costs and consider downsizing your home to free up cash.

## Transcript

there's a lot of differ advice out there
when it comes to saving up for
retirement and for young people it can
get really confusing really fast in some
cases according to a Fidelity study on
average Americans have saved only 78% of
the amount that they'll need in
retirement so how do you get started
let's go to square one here joining me
now is Tiffany alishe who is the is's
known as the budget n as well we should
also mention she's a personal finance
education educator and author you see
the book there on the screen new book
made the Practical guide to reaching
your financial goals Tiffany great to
have you here in studio with us be here
Brad our friend Ross Mack actually
that's my friend too just so you our
Collective friend Ross Mack advises
against maxing out your 401K and you
seem to agree to some extent here so
what are the levers that people can pull
prior to maxing out that 401k before
thinking about maxing out your 401K
because it might not be realistic
$23,000 is the the max for 2024 okay so
a lot of people don't have that the
average American is making less than
$60,000 a year right so you want to ask
yourself one do you have proper health
insurance maybe you want to save for a
down payment on a home maybe you have
high credit card debt that you want to
focus on do you have life insurance if
you have a family there are other things
plus the 401K is not the end all Beall
when it comes to retirement accounts
with tax advantages there's also a WTH
Ira have you considered that so consider
those things before Max maxing out but
what you want to do Brad for sure is
whatever whatever your company matches
make sure you at least get that match
that's the free money that's owed to you
okay get that match and that's the
second time that we've heard that in
today's show you know when you think
about beginning retirement planning for
some who are just entering into the
full-time Workforce in their 20s that
conversation starts then so how can
people that are even in their 20s start
to begin their retirement plan
especially in your 20s because time is
on your side isn't that how the song
goes right so one you want to start now
it doesn't matter how small the amount
start now and when you're 20s I want you
to create the Habit that the more you
make the more you start to set aside so
every time you get a raise and increase
to your income you're going to set aside
more in your 20s it's also a good time
to practice asking for advice if you
have a traditional 401K at your at your
job they almost always come with a
financial advisor attached call them
reach out to them and leave your money
alone don't touch it because if you
allow it compound interest is really
going to set you up for retirement
what's the one thing that you wish you
could tell your 20-year-old self about
retirement if you could go back and do
things differently well honestly I would
have told her that like one when I first
started I didn't realize I actually had
to choose my account that I had my money
sitting in a money market account for
longer than I knew because you know the
money you say yes take out this much
money a month for my check I didn't know
like past that girl you have to make a
decision where it's going to go so it
was there for a couple of years before I
actually chose my accounts and I lost
out on that earnings so that's what I
would tell her like to not just start
now educate yourself see it through ask
ask questions we me we we mentioned from
the study from Fidelity how many people
do not have enough set aside for
retirement what can people do if they
don't have enough or make enough to set
aside for retirement right now and
honestly that's going to be so many
people so one whatever you can set aside
set it aside you're also going to want
to really look about increasing your
income can you we hate to hear the word
side Hustle but what other things can
you do to make more money can you budget
a little better maybe there's some
expenses you can get rid of so you can
put more money toward retirement also
consider that retirement might look like
working for you you might have to work
part-time to supplement your retirement
income and also don't give up like it
can feel really overwhelming but
retirement can be still a pleasurable
experience if you start to do something
now okay and just once you finally set
that that up for yourself and you say
hey I'm ready to retire what are the
pitfalls that you need to avoid once
you've retired so that you can
responsibly tap into the budget that
you've created for yourself so once You'
retired I want you to make sure that
you're really looking at your healthare
expenses it's one of the main expenses
that are going to go up once you're
retired and so like now might not be the
time I get it that we all want to throw
money away at our private island but you
might want to make sure that you have
enough Healthcare expenses to cover
whatever that's going to look like also
too like mapping out what life looks
like we're living longer and longer and
longer how much do you actually need can
you reduce some expenses now is a great
time to say do we need this big old
house maybe there's something smaller
maybe we can sell this house and put
that money toward retirement as well and
enjoy you know you work so hard enjoy
enjoy enjoy