For most of us, the words 'retirement' and 'pension' are enough to bring on a set of anxiety-fuelled heart palpitations.
Purchasing a car or paying off student loans seem like pipe dreams right now, let alone having enough money to spend the winter years of our lives sat sipping Pina Coladas and playing golf.
However, according to recent statistics, it's actually completely possible to retire as a millionaire - all you have to do is follow a few simple steps.
Research conducted by financial services company AJ Bell shows that a 22-year-old would need to save just £18 per week, or £78 per month, in order to reach this monetary goal by the age of 65.
How is this possible? By utilising the power of regular savings and compound interests. Investors should take advantage of a Lifetime ISA, as it offers a whopping government bonus of 25 percent each year.
Buying a house seems almost unfathomable to many young people. Credit: PA
After the annual £4,000 Lifetime ISA allowance has reached its limits, investors should then use the tax efficient stocks and switch to regular ISA accounts to make interest on their savings.
The older you get, the more you have to invest if you want to reach millionaire status by 65. For example, a 25-year-old would need to save £105 per month, a 30-year-old would need to save £174 a month, and so on (check out AJ's graph for exact figures).
Credit: AJ Bell
Laura Suter of AJ Bell told the Telegraph that if you start saving and investing young, you could benefit from compound growth as the years go on.
She said: "This is when your savings grow each year and then in future years you get growth on that growth. As the example shows, the later you leave it the amount you need to start saving quickly ratchets up.
"Investing in the stock market does involve taking risk, but over the long term shares have delivered very strong investment returns compared to other types of investment.
"One of the most valuable things millennials have on their side is time. This enables them to take a very long-term view and know that they can sit tight when things get a bit bumpy and ride out any short-term market volatility."
When it comes to ISAs, Laura pointed out the beauty is that the money is there in the account - there is no tax to pay so it's a simple way to save long-term. And it will grow faster if you increase your contributions as your earnings grow.
"The money can be accessed at any time should you need it," she said, "but if you can leave it untouched and be patient it is possible to turn yourself into an ISA millionaire."
Featured Image Credit: PA
