When is the Best Time to Start Planning for Retirement?

The short answer is: when you start your first job. Planning your retirement should really begin when you start working, no matter how menial your job may seem. Few people actually do that, but it’s a smart decision and an extremely good habit. It may seem overwhelming, but you can manage it with a little guidance and good intention. If your employer provides financial advisors as part of your benefits package, take advantage of having access to them, or seek qualified financial advisors in your community. 

If not, read up and learn as much as you can to start a retirement plan for yourself. Open a savings account to get started. If you are already saving, whether for retirement or another goal, keep going! Saving is a rewarding habit.

If you're not saving, it's time to get started. Start small if you have to and try to increase the amount you save each month. The sooner you start saving, the more time your money has to grow. Make saving for retirement a priority. Devise a plan, stick to it, and set goals. Remember, it's never too early or too late to start saving.

The earlier you start, the more likely that you will be on track to meet your goals and objectives. If you start late and find that you are behind, making changes could mean sacrificing what you’ve worked hard to keep.

Retirement is expensive. Experts estimate that you will need at least 70 percent of your pre-retirement income – lower earners, 90 percent or more – to maintain your standard of living when you stop working. Take charge of your financial future. The key to a secure retirement is to plan ahead

If your employer offers a retirement savings plan, such as a 401(k) plan, sign up and contribute all you can. Your taxes will be lower, your company may kick in more, and automatic deductions make it easy. Over time, compound interest and tax deferrals make a big difference in the amount you will accumulate. Find out about your plan. For example, how much would you need to contribute to get the full employer contribution and how long would you need to stay in the plan to get that money.

Don't touch your retirement savings. If you withdraw your retirement savings now, you'll lose principal and interest and you may lose tax benefits or have to pay withdrawal penalties. If you change jobs, leave your savings invested in your current retirement plan, or roll them over to an IRA or your new employer's plan.