We had a couple in their early thirties interested in eventually moving to a residential park home. To initiate their retirement planning, we focused on setting achievable savings goals and understanding investment basics. We explained the importance of starting early, using compound interest calculators to demonstrate potential growth. By creating a tailored investment plan with a mix of stocks and bonds, we ensured they felt confident about their future, even as new investors.
I reframe retirement as being "work optional". Many times, people starting their first job have competing priorities, such as: rent, student loans, vacations, car payments, etc. Thinking about saving for "old age" is hard to imagine for most people in their 20's. However, I've found that showing people the value of compound interest really works for them. While in theory, compound interest is easy to understand (interest on interest), the sheer magnitude of the increase in retirement balances for starting in your early 20's versus your early 40's is staggering. For example: Saving $500 a month in an IRA starting at age 22 could grow to $1,590,000 with a 7% rate of return at age 65 versus $343,000 if you started at 42! That's almost 5x in dollars available for retirement.
I would begin by educating clients about the importance of early investment, introducing them to concepts like compounded growth and various retirement options. Sharing a relevant case study, particularly focused on millennials, would illustrate the benefits of starting early and making informed financial decisions.