Reinventing retirement: How young adults are preparing for a future after work

By Victoria Mejicanos 
AFRO Staff Writer 
vmejicanos@afro.com 

For many young adults, retirement no longer follows a straight path from a steady job to a pension. Instead, entrepreneurs, early career professionals and graduate students are navigating an array of options to navigate finances amidst economic uncertainty, such as side incomes and various savings plans.

“It’s more challenging now because you have to do it yourself,” said Eustache Clerveau, a certified financial planner who works with younger corporate clients who are often the first in their family to accumulate wealth. 

Clerveau noted that there is no longer a roadmap to retirement for younger generations as pensions disappear and trends such as increased entrepreneurship, a changing economy, and earlier retirement rise, which he says makes essential skills such as saving and budgeting so essential. 

Some examples of savings accounts include, but are not limited to: 

• Traditional: Usually, the basic savings account is offered at banks and credit unions. It typically has a lower interest rate. 
• High-Yield: It pays significantly higher interest rates than traditional savings accounts, typically offered by online banks with lower overhead costs. It may be harder to access these savings instantly. 

• Student Savings: An account designed for young people with features tailored to students: no monthly fees, low or no minimum balance requirements, and sometimes financial education tools.

• Certificate of Deposit (CD): This is a type of savings account where a party agrees to leave their money with the bank for a set period in exchange for a fixed interest rate. CD terms range anywhere from one month to five years or longer. Early withdrawal from a CD comes with a penalty such as interest. They typically have higher fixed rates. 

• Money Market: Money market accounts are similar to savings accounts but often include check-writing or debit access and require higher minimum balances for the best rates. They’re useful for those with larger balances who want flexibility, but may come with fees and added requirements.

• IRA/Roth IRA: IRAs are tax-advantaged retirement accounts with annual contribution limits, allowing up to $7,500 in 2026, or $8,600 for those age 50 and older. A Roth IRA is funded with after-tax dollars and offers tax-free withdrawals in retirement, while a traditional IRA uses pre-tax contributions that are taxed upon withdrawal.

Joyson R. BaLisamor is a young entrepreneur raised in the city of Baltimore. Growing up in a lower-income household, he saw many socioeconomic and health disparities in his immediate community, which led to the creation of his business, Jay’s Watermelonade.

Through his business, he hopes to promote heart-healthy options, while also creating socioeconomic opportunities for his employees. 

Having grown up in indigent circumstances, he sees entrepreneurship as a flexible role where he can take what he has learned independently about money and apply it to best fit his financial goals. 

“I really saw entrepreneurship as a path for me to have more freedom with my time, but also more financial freedom with the opportunities that I can have by growing and scaling my business,” said BaLisamor. “I think retirement definitely looks different compared to traditional careers that have a 401(K) or kind of an employee-based program, compared to being self-employed.”

BaLisamor actively considers his retirement and currently has an independent retirement account. He is also considering how to set up retirement accounts for his employees. Ultimately, BaLisamor’s goal is to be able to retire and live comfortably off of his entrepreneurial investments. 

For some young adults like Josh Kyei, a student pursuing his mathematics doctorate, the challenge isn’t choosing how to save or invest, but finding enough income to save at all to consider retirement.

“It’s not really something I’m thinking about, just because I don’t even think I can,” said Kyei.  “I’m at the stage where I can’t even figure out how to save for that kind of thing since I’m living paycheck to paycheck.”

He studies at Howard University and receives a stipend for the program, but still has multiple side jobs. He previously attended Moorhouse University, where he says there were financial literacy courses, but they were often geared toward those aiming to work in the corporate sector. 

“I don’t think there is a lot for us,” said Kyei about financial discussions for doctoral students. “When they talk about Ph.D.s, they like to say that you’re gonna be broke. They expect it to be a rite of passage, and if you’re able to make it, then you make it.” 

Clerveau emphasized that regardless of career path, starting early—even in small amounts—can make a significant difference over time. 

“It really doesn’t matter how much money you make but you start building the habits early on,” said Clerveau. He said the more that people go through life, the harder it becomes to cultivate the habit of saving and investing. 

Besides saving, Clerveau advocates for investing, not in the market but in oneself.  

“Invest yourself, too, ” said Clerveau.
 “Retirement is important but at the same time, you need to  get certifications or different options so you can make more money as well. Invest in your business, in yourself.” 

BaLisamor echoed similar sentiments, saying he recommends that all young people, regardless of entrepreneurship, build financial habits early. 

“I definitely recommend having a way that you can generate income based off of a skill that you have outside of a career job,” said BaLisamor. “I think it’s great to be able to have something of value that you can provide or offer to the community, so that, you know, you can kind of have a self-sustainable source of income as well.”

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