Finances: Essential Retirement Moves To Make In Your 20’s And 30’s


In your 20’s you are just out of university, probably secured your first job; life is just starting. So most of your energy and finances are spent on getting settled, paying student loans and enjoying your youth. When you clock 30, you are starting to enjoy life a little more. You are more grounded in your career path and life is a little easier. You have probably started your family so most of your finances have been redirected there. With all this happening it is easy to forget to plan for your retirement. However, for a comfortable and wonderful retirement, there are a few moves and habits that you will need to master in your 20’s and 30’s.


Saving for your pension. Image from

Control Investment Fees

It is always prudent to invest when you are young. However, as you plan your investment deals be keen to avoid investment fees. If you cannot avoid them find other solutions that reduce them. Investment fees include commissions or transaction costs. No fee investments are investment opportunities that have no fees attached, meaning no fees to start investing or to withdraw them.

For stocks, you may not have control of the movement in the stock market but you can look for brokers who charge less commission. When it comes to withdrawing cash from investments, avoid bouncing your money through various platforms. Instead, withdraw directly from the bank. Each shilling you misuse can be a few thousand in 30 years.


Your cash and your twenties. Image from

Invest In pension funds

In Kenya, when you get into formal employment you get the NSSF insurance cover. You contribute a portion of your income to a fund that serves as your retirement fund. Your employer is also mandated to do the same. However, it is also important to look into pension plans and use them to save up for investment. One advantage of pension funds is that most of them provide for the option of withdrawing in a lump sum.

Clear your debt

In your early 20’s you may be busy clearing student loans and this may seem like a hindrance to saving up for retirement. Search for plans that suit you that will allow you to pay your debt from the moment you get your first job. You can start small then over time, you can step up your payments when your income increases. This will sort out your debt quickly. Strive to do the same for any unavoidable debt you incur; set a plan for repayment. This ensures that you do not drag debt into your later years or even worse your retirement years. Handling debt without a constant flow of income can drain you.

Get to Know Yourself

We all have different ideas of how we plan on spending our retirement years. For some of us, it is taking up farming, others want to go big in financial investments or even get into real estate. Whatever your plan is, focus on it and start working on it very early in your life. This will also give you a greater idea of what specific plans and moves to make to help you transition into a great retirement. If it is farming, learn more about land and farming and invest in that sector. If it is real estate, educate yourself on everything real estate and start working on it. You will not just wake up one day and have your dream retirement life.

Educate Yourself

Keep your ear to the ground. Learn as much as you can about retirement plans and ways you can make your retirement more comfortable. Do your research. It may be easier to make risky investments when in your 20’s but if you make big blunders, you may ruin your entire retirement plan and there is very little one can do once you are at the retirement age.

You need to start saving for your retirement early. Here is why everyone needs a retirement benefits plan

Cash in your 30s. Image from


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