Millennial workers are decades away from retirement, so you might think that there’s still plenty of time to start saving and planning. However, it’s never too early to start saving, and waiting can reduce your nest egg by hundreds of thousands of dollars by the time you retire. Below are a few tips for collecting money for retirement, building up your credit union account, and making the most of your savings.

A Guide for Millennials Saving for Retirement

1. Maximize 401(k) Contributions

Contributions to your employer’s 401(k) are tax-deferred, which reduces your tax burden and could have benefits far in the future. Many employers offer contribution matching programs, which are essentially free money. Thanks to the power of compound interest, the money in your 401(k) account will grow exponentially over time, so maximize your contributions every month.

2. Set up an Emergency Fund

Having cash on hand will give you the resources to handle financial emergencies without going into debt. Unexpected job losses, medical emergencies, and car breakdowns can happen at any time, so saving up a few months’ worth of living expenses in a credit union will help protect your retirement funds.

3. Invest in Stocks

The stock market is one of the most reliable long-term investment vehicles, as long as you can weather the ups and downs of the market. Young investors have a much higher tolerance for risk, so open an IRA as soon as possible, especially if your employer doesn’t offer a 401(k). Mutual and index funds are excellent options for those who aren’t sure how to begin investing, as they provide long-term returns and a diversified portfolio.

For over 80 years, North Jersey Federal Credit Union has helped members prepare for the future. As a member-owned credit union, NJFCU offers a wide range of financial services, competitive pricing, digital convenience and exceptional service to those we serve. NJFCU deposits are federally insured by the National Credit Union Administration (NCUA). Learn more today by visiting their website or and call (973) 785-9200 with any questions.