Reuters Money

By Yesha Shah

In today’s dismal job market, it’s no wonder college grads are focused on finding a job instead of socking away money for the future. Unfortunately, young people aren’t the only ones befuddled by their post-career plan: 55 percent of Americans say they don’t know how to achieve their retirement goals, an ING survey finds.

But saving early is the key to building up a nest egg. A panel of experts brought together by Merrill Lynch Wealth Management last month offers twentysomethings this advice for getting started on reaching their retirement goals:

Get out of debt

It’s common for students to graduate with thousands of dollars in student loan debt, and thousands more in high-interest credit card bills. “Don’t forget that paying down debt is … the financial equivalent of saving. So if you have some debt, be focused on paying that down,” says Andrew Sieg, head of retirement services at Bank of American Merrill Lynch.

Be flexible

Don’t count on working at the same place for your entire life. Traditional jobs — where you work one place for your entire career — are gone; pensions, gone, says ABC host and panel moderator Charles Gibson. “You really are responsible in 401(k)s for yourself, in effect, in retirement. Social Security is a little iffy. You can work yourself into a panic about this,” Gibson says.

And flexibility will pay off in the event of an unexpected job loss or changes in income, says Anya Kamenetz, author of Generation Debt and staff writer at Fast Company.”Real financial freedom and security doesn’t come from having a certain number in the bank… It comes from knowing that I have the ability to live within my means,” she says. “If I have a fluctuating income, I can live at the low end of that, and that’s what really makes me feel comfortable.”

Take advantage of workplace savings program

Get educated about your company’s 401(k) plan and learn about your benefits, says John Pelletier, director of the newly created Center for Financial Literacy at Champlain College. Statistics show more that 40 percent of employees don’t take advantage of their employer match, Pelletier says. People aren’t aware of corporate matches for retirement contributions, he says. “And that’s guaranteed return money.”

Don’t forget to roll over the money in your 401(k) plan after each job ends, no matter how short-term, Pelletier advises.

Build up your skill set
Investing in yourself will pay off, says Kamenetz. Young people “understand the importance of investing in education and having skills that translate from decade to decade, career to career,”  she says. Developing transferable skills and acquiring various experiences are key to diversifying your life portfolio and will better prepare you for peaks and valleys in the workforce.

For a full transcript of the retirement discussion, click here.