What approach should young individuals take in planning for retirement, according to the provided advice?

Young individuals should focus on utilizing employer-sponsored retirement plans and personal Individual Retirement Accounts (IRAs) as part of their approach to retirement planning. This strategy is advantageous because employer-sponsored plans, such as 401(k)s, often come with benefits like employer matching contributions, which effectively enhance the savings potential without requiring additional effort from the employee. Additionally, these plans allow for pre-tax contributions, which can lower taxable income during the working years.

Personal IRAs, on the other hand, offer individuals greater control and flexibility over their investments, along with tax-deferred growth. Contributing to IRAs can also be beneficial since they come with various tax advantages that can help young individuals build a substantial retirement fund over time.

Relying solely on Social Security benefits is typically inadequate, as these benefits are not designed to fully support an individual's retirement needs. Similarly, saving only in a bank savings account often yields low interest rates that may not keep pace with inflation, thus failing to grow wealth effectively. Investing exclusively in real estate can be risky and may not provide the diversification needed for a robust retirement strategy. Therefore, making use of employer's retirement plans together with personal IRAs forms a comprehensive and balanced approach to savings and investment for retirement.