Your retirement dreams might be on thin ice, even if you're only 25.

Between predictions of Social Security's eventual collapse and the phasing-out of most companies' pension plans, workers unprepared to pay their own way may have little to depend on when they reach retirement.

But ask a fresh college grad -- or anyone else under 30 -- about retirement and you're likely to get a blank look .

It's barely on the radar for people like Jeff Clayton, president of the Young Des Moines Social Club, a hip networking group for young adults.

"Yikes," he wrote in an e-mail. "I think more people are worrying about getting and keeping a job than about worrying about retirement. … Having a job today is more important than retiring tomorrow."

True enough.

Still, if you've got dreams of traveling the country by RV or living along the beaches of Mexico in your golden years, a few small steps now could pay off big in the long term:

'Stop charging. Start saving'

You're young and most likely not making a lot of money, but time is on your side.

Making smart investments now with a little bit of money can pay off big down the road, thanks to the magic of "compounding rates of return," financial advisers say.

At age 25, if you start placing $1,000 each year into a retirement fund such as a 401(k) or any other type of retirement account, you could wind up a millionaire -- or at least have a large nest egg.

As you grow older and -- we hope -- are better paid, increase the amount of money you sock away into that retirement account.

Financial adviser Linda Lundstrom Cook recommends saving at least 20 percent of your salary.

"For young people, the biggest advice I can give is keep the debt under control. It's too easy to go out and buy the new furniture with no interest until 2005," said Cook of Gilbert & Cook Inc. "That's an easy trap to get into. … Stop charging. Start saving."

Saving for retirement vs. paying off debt

Of course, $1,000 a year is a lot of money, especially when you're loaded down with college loans and credit card bills.

The math for paying off $10,000 of credit card debt by making minimum payments, even at a low rate like 8 percent, is frightening -- $30,000 is what it will cost in the long run.

It's always a good idea to pay down credit card debt quickly. But remember, the longer you wait to begin saving for retirement, the less time your money will have to work for you.

So which is best: paying off the debt first or saving for retirement?

There's no rule of thumb among experts, though many say you should look at the interest rates.

While paying down high-interest credit card debt quickly is good, the same is not necessarily true for student loans.

Student loans typically carry much lower interest rates than credit cards and student-loan payments often give you a tax break.

Strike a balance between paying off college debt and saving for old age, says retirement expert Keith Gredys of Kidder Benefits Consultants Inc.

You'll find tax advantages in many retirement savings plans, including employer-sponsored 401(k) plans, where your contributions go into the savings plan tax-free. Of course you pay tax on it later when you withdraw it in retirement, but that's a long time off.

Also, many employers match portions of worker contributions to 401(k)s, and that's free money. Don't be a fool and pass it up.

Given the tax breaks, placing $1,000 in the account won't really cost you $1,000. Depending on your tax bracket, it might be only $700 or so.

Diversify

Some experts fear retirement plans rooted in the stock market could fail, as more of our parents retire and pull their money from their investments.

If everybody took their money out at once, that would hurt. But that scenario is unlikely, say experts such as money guru Tom Pflanz of McGowen, Hurst, Clark & Smith.

Still, diversification is good, and Pflanz recommends putting money in a variety of investments, skipping the temptation to dump all of your cash in one company. Not only do you want to invest in different industries, you should try putting money into U.S. and European companies.

"You've got to have faith that the U.S. and world economy is going to expand," Pflanz said.

Listen to mom

Don't overreact, my mom warns. Remember you're still young, she says.

While it's important to prepare for the future, make sure you're leaving enough money in your pocket to enjoy life.

Weekly WorkBytes column written by and for Gen-Xers learning the realities of the workplace. Dawn Sagario of The Des Moines Register writing this column every other week. Write the columnist at The Des Moines Register, P.O. Box 957, Des Moines, Iowa 50304-0957.