When to start saving for retirement

by Krantcents · 14 comments

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Is there a right time to start saving money for your retirement? In short the simple answer is yes, as soon as possible. My theory and that of many others is that as soon as you start working you should start saving for your retirement. Even if it is just a tiny percentage of your salary each month you should put away something for your golden years.

Generally people start earning an income in their 20’s and although it may be a time fraught with paying back student loans, setting up house and even getting married, preparation for the future is vital.  A difference of even a few years can impact on your retirement and the sooner you start investing in a high interest retirement annuity with an adequate tax rebate, the better.

Saving for your retirement is an investment in your future and like any investment, the longer it has to grow, the more interest it will accrue. Each year’s gains will generate their own gains the following year, so even a small monthly contribution adds up over time. As your income increases you can increase your retirement fund contribution accordingly.

Financial analysts have pin pointed your 30’s as the vital years for retirement planning as you have the potential to earn the most money during these years and have an abundance of energy to plough into work. By the time you reach your 40’s you would need an aggressive savings approach to make up for missing saving in your 30’s and you may never reach the same targets if you start in this decade. If you only begin to save for retirement properly in your 50’s analysts have found that unless you are extremely clever and have a large nest egg you may struggle to save enough or make reckless and risky decisions based on a lack of time.

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Matt from Saverocity June 21, 2013 at 6:34 am

A retirement saving post written by an online Casino… conflict of interest at all?

Krantcents June 21, 2013 at 7:59 am

I am glad you caught that! Many people look at quick fixes to important issues such as weight loss, retirement, debt etc. I see it more of a tongue in cheek statement regarding investing.

Holly@ClubThrifty June 21, 2013 at 8:32 am

We didn’t get started until our late 20’s and I really wish we would’ve started earlier. However, I’m glad that we didn’t wait to start until our 30’s or even 40’s. I know some people who didn’t start saving until pretty late in the game!

Krantcents June 21, 2013 at 8:50 am

Time is the most important factor in investing! It is better to start small in your twenties vs. not at all. You can make it up, but it means you are extending the amount of time you need.

Mike@WeOnlyDoThisOnce June 21, 2013 at 9:05 am

I would advise saving as soon as financially viable. The wonders of compound interest…

Krantcents June 21, 2013 at 10:32 am

I agree time is the most important element in investing. Even if you start out small such a $1-150 per month can grow into something meaningful in 20-30 years.

Andy Hough June 21, 2013 at 1:04 pm

Getting started as soon as you can is the best time. I wish I would have started earlier. It isn’t that difficult to continue saving once you have started but it can seem difficult to start.

Krantcents June 21, 2013 at 1:11 pm

I suggest to start small such as a little as $100 per month will add up over time. You will really win if there is an employer match. It is much easier to add as your income increases.

thepotatohead June 21, 2013 at 9:30 pm

I’ve been saving since I started working, but I wish I was saving more in the first few years. I was just doing up to the employer match on my 401k, so not a huge amount. I’ve bumped that up considerably, but still not quite to the 17.5k max. The earlier the better for sure!

Krantcents June 22, 2013 at 8:00 am

Good for you! Even a smaller amount was worth the effort. Time cures all the mistakes.

Alexis Marlons June 22, 2013 at 7:27 am

I actually started saving when I got my first job after graduation. I started with little amount, but to accumulate it all, I know I have saved quite an amount already.

Krantcents June 22, 2013 at 8:18 am

Great job! Starting saving for retirement early however small is the best choice. You can always increase the amount as you become comfortable with it.

Darwin's Money June 23, 2013 at 7:05 pm

I started saving while still in college. It wasn’t much, but it put me in the right mindset for my career-income investments later. Definitely important to start asap!

Krantcents June 23, 2013 at 8:00 pm

Funny, I lived off savings from summer earnings throughout college. The savings habit helped me achieve my dreams!

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