When Should You Start Saving?

Did you know that most people don't start seriously saving for retirement until age 55? 🤯

Sure, most people save a bit in their 401k/403b/other employer-sponsored account. You might also save a bit in a savings account of some kind. But you’ve got a house to save up for, then the house to pay for; kids to pay for; then college to save up for 🏡👶👧👨‍🎓

By the time you have your eyes on saving for retirement- after the mortgage is under control, after the kids are out of the house and off the payroll- then boom! All of a sudden, you’re 55 😀

If this is you… you’re completely normal! Most people follow this trajectory, but then they worry. Is it too late to save? Am I ever going to be able to retire? 🤷

As they say… the best time to plant a tree was 20 years ago; the second best time is today 🌳

It’s never too late to change your trajectory. If you’re looking at a retirement age that’s not too far off, and just now have the luxury of taking care of yourself, you have options that can help you prevent losing any of your hard-earned savings in the stock market or other risky investment types 💸

If you’re younger than that and you’re already investigating your options- then you’re ahead of the game- go you! 🏆

If you have no idea where you are, well… you’re probably doing better than you think! 😊

Here are a couple of rough estimates for you:

Scenario 1: Age 55, average Denver income

If you are:

• 55 years old now, 👨 👩

• earn a median Denver household income ($68,000),

• you’ve saved/invested $150 per month for the last 30 years, and

• you want to retire at age 70…

Then you will need to save 15% to 20% of your income from now until retirement.

Scenario 2: Age 40, average Denver income

If you are:

• 40 years old now,

• earn a median Denver household income of $68k, 💵

• you’ve saved/invested $150 per month for the last 15 years, and

• you want to retire at age 70…

Then you will need to save 10% to 15% of your income from now until retirement.

Scenario 3: Age 25, average Denver income

If you are:

• 25 years old now,

• earn a median Denver household income of $68k,

• you haven’t started saving yet, and

• you want to retire at age 70… 👴 👵

Then you will need to save 2% to 5% of your income from now until retirement.

The age at which you start saving makes a big difference! But also know that it’s never too late; you do have to save more later on, but that’s often easier to accomplish as we get our feet under us (financially speaking) later in life.

Now That’s Smart Money 🧐