{"id":18830,"date":"2025-12-15T03:13:00","date_gmt":"2025-12-15T09:13:00","guid":{"rendered":"https:\/\/www.discover.com\/online-banking\/banking-topics\/?p=18830"},"modified":"2026-02-04T11:51:04","modified_gmt":"2026-02-04T17:51:04","slug":"when-to-start-saving-for-retirement","status":"publish","type":"post","link":"https:\/\/www.discover.com\/online-banking\/banking-topics\/when-to-start-saving-for-retirement\/","title":{"rendered":"When should you start saving for retirement?"},"content":{"rendered":"\n

When should I start saving for retirement? If you like planning ahead, you\u2019re probably already asking yourself this question. You might be waiting to start saving for retirement at 30<\/a>, once you\u2019re more established in your career, but you could begin saving even sooner.<\/p>\n\n\n\n

In fact, the sooner you start saving, the better. Putting money into a retirement account as early and consistently as possible will give your savings more of a chance to grow during your working years.<\/p>\n\n\n\n

Why save for retirement?<\/h2>\n\n\n\n

The future is unpredictable, but having retirement savings is a likely necessity for most people. Social Security payments\u2014distributed to those who are at least 62 years old and who worked jobs in which they paid Social Security taxes for 10 years or more\u2014probably won\u2019t be sufficient to cover all of your expenses in retirement, especially as the cost of living increases.<\/p>\n\n\n\n

If you want a comfortable retirement, particularly if you plan to travel a lot, you\u2019ll need a solid retirement fund. Your retirement savings can even be a reliable source of passive income if you choose the right saving plans for your situation.<\/p>\n\n\n\n

When should you start saving for retirement?<\/h3>\n\n\n\n

Even if retirement feels like an eternity away, you shouldn\u2019t wait to save for it.<\/p>\n\n\n\n

\u201cYou should start saving for retirement as soon as you are able to,\u201d recommends Michelle Schroeder-Gardner, founder of a financial entrepreneurship website. \u201cThere is no need to wait. Even if you have just a little bit to save each month, I still recommend going for it.\u201d<\/p>\n\n\n\n

One reason it\u2019s wise to start saving as early as possible is that it helps to establish a savings habit. But more importantly, starting to save early gives your funds as much time as possible to grow.<\/p>\n\n\n\n

\u201cCompound interest means the money you invest for retirement has the potential to grow over decades,\u201d Schroeder-Gardner says. \u201cPlus, saving early can get you in a great mindset so that you aren’t too afraid to start later because you have already started!\u201d<\/p>\n\n\n\n

Compound interest allows your savings to grow exponentially, as earned interest is added to the base amount when calculating future interest. That means even a small amount of early savings can multiply significantly by the time you retire.<\/p>\n\n\n\n

How many young people are saving for retirement?<\/h3>\n\n\n\n

While many Americans say they are behind on their retirement savings, younger people often express less concern.<\/p>\n\n\n\n

\"Three<\/figure>\n\n\n\n

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According to a recent Bankrate survey<\/a>, 57% of respondents said they were behind on their retirement savings. Per the survey, a majority of baby boomers (60%) said they were behind on their retirement savings, compared to 49% of millennials and 42% of those in Generation Z.<\/p>\n\n\n\n

Gen Z workers were the least likely to have contributed to their retirement plan in the last year. Could it be that most Gen Z respondents don\u2019t believe they must contribute now to stay ahead of their retirement goals? Or could it mean that they don\u2019t know how to begin? If you wait to start saving for retirement at 30, your older self may regret it.  <\/p>\n\n\n\n

It\u2019s simple to get started. Let\u2019s discuss how you can begin saving for retirement in your 20s.<\/p>\n\n\n\n

When should I start saving for retirement, and how can I do so?<\/h3>\n\n\n\n

It\u2019s simple enough to start saving for retirement. First, you should make a monthly budget by subtracting your expenses from your income. Now, you can take a portion of what remains to set aside for retirement.<\/p>\n\n\n\n

But it\u2019s not enough to start saving for retirement. You need to find a way to keep<\/em> saving consistently.<\/p>\n\n\n\n

\u201cYou can start by setting up automatic transfers from your paycheck or bank account to your retirement account, essentially paying yourself first so that your retirement is consistently being thought about and saved for,\u201d Schroeder-Gardner says.<\/p>\n\n\n\n

Once you\u2019ve automated your retirement savings, you can focus on other priorities while your funds grow. Alternatively, you can pay closer attention to how your retirement savings are invested<\/a>. <\/p>\n\n\n\n

\u201cAn index fund is an easy way to get started, instead of an individual stock, so that you have hedged your risk by being more diversified in the stock market,\u201d Schroeder-Gardner suggests. An index fund is an investment fund that investors can use to invest in a pooled collection (or \u201cindex\u201d) of stocks, like the S&P 500 index of large-cap securities or the Nasdaq-100 index of large technology-centric stocks. <\/p>\n\n\n\n

You should also consider speaking to a retirement planning professional if you\u2019re looking to create a personalized investment strategy.<\/p>\n\n\n\n<\/div>\n\n\n

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“You should start saving for retirement as soon as you are able to. There is no need to wait.”<\/p>\n