Rachel Cruze urges people in their 20s to prioritize Roth IRA saving, saying time lets investments compound. A projection estimates that $200 monthly deposits from age 25 could grow to about $1.26 million by 65 at a hypothetical 10% annual return.
Roth IRA contributions are made with after-tax income, while qualified retirement withdrawals are tax-free. The 2026 contribution limit is $7,500 for people under 50 and $8,600 for those 50 and older; $200 monthly equals $2,400 a year. The projection uses about 10% annual growth, the S&P 500's long-run historical average cited in the article.
Thrivent's 2026 survey found 47% of non-retirees doubted they would ever fully retire, and more than a third felt behind peers because of high living costs and insufficient income to save. Northwestern Mutual's study put the retirement-savings “magic number” at $1.46 million, up more than 15% from 2025; nearly half of respondents said they believed it was somewhat or very likely they would outlive their savings. Using the same 10% annual-return assumption, the article estimates $200 monthly savings begun at 22 would grow to about $1.7 million by 65, versus $684,000 if begun at 31.
