“Time is an asset when you’re young, and you should use it,” he said. “Putting time on your side is an incredibly powerful compounding tool.”

Thanks to the magic of compounding – where your investments earn returns and then those returns earn more returns over time – every dollar invested now can grow significantly by the time you retire, Lee said.

For example, he said, if two investors contribute $200 per month to retirement and the investments earn 7% annually, with one investor starting at age 25 and the other 35, the former would accumulate more than $530,000 while the latter just $246,000 at age 65.

“The difference can be life altering,” Lee said.

For those who can’t save a lot for retirement, Lee advised starting with small amounts to build good habits, then increasing contributions after a raise or bonus. 

Use tax-advantaged accounts
If you have a retirement plan at your workplace – such as a 401(k) or 403(b) – consider contributing, Lee said. These plans offer the convenience of payroll deductions, so the money gets invested before you can spend it. Perhaps more importantly, they offer tax benefits, which Lee likened to running a race without hurdles.

“If you don’t have to jump over hurdles throughout a race, you’re going to run faster, more efficiently and with less friction,” he said.

Pre-tax contributions to a 401(k) are not taxed until you begin withdrawals in retirement. Some employers also offer a second type of 401(k) called a Roth 401(k), in which you invest after-tax money today and don’t pay income taxes on your withdrawals in retirement.

Some firms offer to match an employee’s contributions up to a set maximum. Lee advised young clients to contribute at a rate that at least gives them the full employer match.

“You don’t want to leave free money on the table,” he said.

If you don’t have access to an employer’s plan, you can consider an Individual Retirement Account (IRA), which comes in two varieties: Traditional and Roth, each with unique tax benefits.

Determine the appropriate asset allocation
Choosing the investments in your retirement portfolio depends on many factors, such as your means, goals, retirement time horizon and risk tolerance. In general, young investors should consider an aggressive portfolio with a higher proportion of stocks, which offer the opportunity for appreciation over the long term, Lee said.

“If you’re several decades away from retirement, you can weather the inevitable ups and downs that come with investing, in return for the potential of long-term growth,” he said.

Lee said that investors can consider target-date funds, a basket of investments that automatically shift the asset allocation over time from a higher-risk, growth-oriented mix of stocks, bonds and cash to a more conservative mix as the target retirement date approaches and is passed.

Consider the value of professional advice
“We want to remind people they aren’t alone in navigating uncertainty,” said Scott Ford, president, U.S. Bank Wealth Management.

U.S. Bank’s recent survey found that those who have worked with a financial advisor report feeling more in control of the parts of their financial lives they can directly influence. In fact, 78% of those with a financial advisor are more confident in meeting their retirement goal vs. 48% without a financial advisor.

“It’s OK to ask for help, and most successful people do ask for help and have advisors to walk them through establishing a plan and executing the plan,” Lee said.

A financial advisor can bring together all the pieces of a client’s financial life – short-, medium- and long-term objectives – that will ultimately inform how much they can contribute toward retirement, Lee said.

An advisor can also discuss retirement vehicles to consider and an appropriate asset allocation, and run hypothetical models to project how much money a client may have in retirement, Lee said.

Take that first step
Retirement may seem far away, but the path to financial freedom starts with small, steady steps taken today, Lee said.

“Gen Z has the power and tools to build lasting retirement security and independence,” he said. “Your future self is counting on you – so take that first step and start building toward the retirement you want.”

Read the full survey report here: U.S. Bank 2025 Wealth Report