Retirement? That’s something for your parents to worry about, right? If you’re a Millennial or Gen Z, chances are you’ve got more immediate financial concerns—student loans, rent, career growth, maybe even side hustles to keep everything running smoothly. Retirement planning often feels like something distant, something you’ll figure out “later.”
But here’s the truth: later sneaks up on you faster than you think.
Hamad Al Wazzan, an advocate for smart financial planning, believes that waiting until your 40s or 50s to start saving for retirement is one of the biggest financial mistakes young professionals make. “Time is your greatest asset,” he emphasizes. “The earlier you start, the less you’ll need to stress about playing catch-up later in life.”
The Power of Starting Early
Imagine you start saving for retirement at 25, putting aside just a small amount each month. Now compare that to someone who waits until they’re 40 and suddenly realizes they need to catch up. Even if they contribute more later, they’ll never fully make up for those lost years of compounding interest.
Hamad Al Wazzan explains, “Compounding is like planting a tree. The sooner you plant it, the more time it has to grow. If you start later, you’re rushing to see results in a much shorter window.”
Here’s a simple breakdown:
- If you save $200 per month starting at 25, with an average annual return of 7%, you could have over $500,000 by the time you retire.
- If you start at 40 and save double that amount—$400 per month—you’d still end up with significantly less.
This isn’t just theory—it’s the reality of how wealth builds over time.
Challenges Millennials and Gen Z Face (And How to Overcome Them)
It’s easy to say, “Start saving early,” but younger generations have real financial hurdles. Hamad Al Wazzan recognizes this and offers practical strategies to help navigate these challenges.
1. Student Debt and Cost of Living
Millennials and Gen Z are often burdened with student loans and high living costs. That makes it tempting to put off retirement savings in favor of paying down debt or covering immediate expenses.
Hamad Al Wazzan’s advice? Find balance. Yes, paying off high-interest debt should be a priority, but it doesn’t mean you should ignore retirement altogether. Even small contributions—$50 or $100 a month—can make a big difference over time.
2. The Gig Economy and Unstable Income
Unlike previous generations, Millennials and Gen Z are more likely to work freelance, run side hustles, or change jobs frequently. Traditional pensions are disappearing, and many don’t have employer-sponsored retirement plans.
The solution? Take control of your own future. If your employer doesn’t offer a pension, consider opening an individual retirement account (IRA) or another long-term savings plan. Automate small contributions so you’re always saving, no matter your job situation.
3. Lifestyle Inflation and the Temptation to Spend
The pressure to “keep up” is real. Social media floods us with images of luxury vacations, designer items, and extravagant lifestyles. But Hamad Al Wazzan warns against falling into the trap of lifestyle inflation—where the more you earn, the more you spend, without saving for the future.
“Spending is easy. Saving is what separates those who achieve financial freedom from those who are stuck working forever,” he explains. “You don’t have to give up enjoying life—you just need to prioritize balance.”
How to Start Retirement Planning Today
So where do you begin? Hamad Al Wazzan suggests a few key steps that anyone, regardless of income level, can implement right away.
1. Set a Realistic Savings Goal
You don’t need to put away thousands every month, but consistency is key. Even 10-15% of your income can set you up for success. The trick is to start now and increase contributions as your income grows.
2. Automate Your Savings
One of the simplest ways to stay on track is to make saving automatic. Set up a direct deposit to a retirement account so that a portion of your income is saved before you even see it. “If you don’t see it, you won’t spend it,” Hamad Al Wazzan points out.
3. Invest, Don’t Just Save
Keeping your money in a traditional savings account isn’t enough. Inflation will eat away at your savings over time. Instead, Hamad Al Wazzan suggests exploring investment options like index funds, ETFs, or real estate.
“If you’re keeping all your retirement savings in cash, you’re actually losing money in the long run,” he says. “Invest in assets that grow over time.”
4. Avoid Dipping Into Your Retirement Fund
It’s tempting to withdraw money early for big purchases or emergencies, but this can cost you thousands in lost interest. Instead, have a separate emergency fund so your retirement savings stay intact.
Retirement Planning Is Freedom, Not Restriction
Many Millennials and Gen Z view retirement planning as something restrictive—like it means sacrificing the present for a future that’s decades away. But Hamad Al Wazzan argues that financial planning actually gives you more freedom.
“When you have savings, you have choices,” he explains. “You won’t have to take jobs you hate just to pay the bills. You can travel, start a business, or retire early if you want to. Retirement planning isn’t about limiting yourself—it’s about creating options.”
Final Thoughts
The best time to start saving for retirement? Yesterday. The second-best time? Today.
Millennials and Gen Z have one major advantage: time. And as Hamad Al Wazzan stresses, leveraging that time is the smartest financial move you can make. Even if you’re starting small, the key is to start. Because when retirement comes—and it will—you’ll thank yourself for making the decision to plan ahead.
So, what’s stopping you from getting started today?
