TIAA’s CEO made $26,000 in her first job but still maxed out her 401(k). She has advice for Gen Z

For young workers watching their salaries get eaten up by rent, groceries, and student loans, setting aside money for retirement can fall to the bottom of their list. But making little sacrifices over time is one of the best paths to ride out post-career days in comfort, according to TIAA President and CEO Thasunda Brown Duckett. Even when the retirement services leader was broke in her 20’s, she still found a way to invest in her future. Right after graduating from the University of Houston in 1996, Duckett landed her first job at Fannie Mae: a government-backed mortgage finance company. And just like other Gen Zers working their way up from the bottom of the totem pole, money was tight. “I made $26,000 when I graduated from college—that was $26,000 more than I made ever—and so I immediately maxed out on my 401(k) plan,” Duckett revealed during Fortune’s Titans and Disruptors of Industry podcast with Editor-in-Chief Alyson Shontell. She’s been topping up her 401(k) ever since, from Fannie Mae’s to her ascension as Chase’s CEO of Consumer Banking in 2016, and her current 5-year run at TIAA. Now she’s a multimillionaire and two-time chief executive, one of just 11 Black CEOs leading Fortune 500 companies. And she hopes Gen Z will start adding to their 401(k)s sooner rather than later. “Especially for young people, retirement seems so far away, but there’s a hack,” Duckett added. “The hack is: first job, first dollar.” “The first thing I tell young people is, your very first job, max out before you get the check, because once you get it, you will find ways to spend it,” the CEO continued, emphasizing the “Power of compounding: $1 today is worth more than $1 tomorrow…You want to make sure you take full advantage of that match.” Duckett’s advice for Gen Z: start investing and stay optimistic After pensions fell out of favor among many employers, the 401(k) has become the default retirement plan for many workers. And there are real financial incentives behind the s