Struggling to Save for Retirement in Your 20s? Here's 1 Potential Solution.

You'll often hear that the sooner you're able to start saving for retirement, the easier building a nest egg becomes. Funding an IRA or 401(k) in your 20s could conceivably give your money 40 years to grow before you need to start using it.

In fact, if you contribute $3,000 to a retirement plan at age 25 and your portfolio grows 8% a year, which is a bit below the stock market's average, you'll be sitting on about $65,000 by age 65, even if you don't add another dime. And while you should aim for a larger nest egg than that, the point is that kick-starting your savings in your 20s is an important thing.

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But it can also feel like an impossible thing. Between entry-level wages, student loans, and other lingering debt, it's hard to find the money for long-term goals when you're barely covering your near-term expenses. So if saving for retirement has been a true struggle in your 20s, there's one thing you may want to do temporarily.

Consider a move back home

Moving in with your parents might seem like backtracking when you've been living on your own for a while. But it could be just the thing that improves your financial situation.

In an April Thrivent survey, 44% of U.S. parents with an adult child between 18 and 35 said a kid of theirs moved back home at some point. And while 55% of young adults who moved back home said it was financially necessary, 27% said it wasn't crucial but did provide financial benefits.

That's why you may want to consider a similar arrangement. If you're able to live at home rent-free, or with minimal rent, you can greatly reduce or eliminate one big expense. Banking the money you'd spend on housing could be your ticket to chipping away at your student loans, paying off lingering credit card balances, and contributing to your IRA or 401(k).

It's an especially good idea to consider moving back home if your employer offers a 401(k) plan with a match you aren't currently capitalizing on. Giving up a match is basically giving up free money for your savings. But if you're able to free up funds to claim that match by moving back home, you can benefit from not just extra money, but growth on that money.

It can be a short-term thing

Moving in with your parents as an adult may not seem like something you want to do. But remember, that arrangement doesn't have to be long-term.

Living at home for even six months could give you a chance to pay off debt and build a savings cushion. So before you write off the idea, talk to your parents and see what options they're open to. It may be just the thing that allows you to start funding your nest egg so you're not left scrambling to play catch-up later.

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