You Can Always Start Planning for Retirement Now

Ana Fajardo
3 min readAug 24, 2022


There is no reason to delay retirement planning until later in life. With a prudent spending strategy, you can retire at any age. Depending on your age and health, the amount of time you need to save will vary significantly. The United States average inflation rate over the past century was 3.22 percent. When estimating how much you need to save for retirement, it is vital to account for day-to-day expenses such as child care.

If you’re in your 30s, you’ve likely graduated from entry-level positions and are earning more money. However, you are probably still paying off bills and delaying retirement savings. For retirement security, it is essential to begin saving for retirement immediately, but it is also crucial to be as debt-free as possible. In addition, it is necessary to maintain a minimum of six months of living expenditures as you approach retirement age.

You should reevaluate your 401(k) or IRA contributions as you near retirement age. Consider boosting your annual contribution rate by at least 1 percent if your workplace offers a matching contribution program. In addition, you can form an IRA to invest tax-advantaged accounts with your retirement savings. By age 67, you should have at least seven times your present annual pay saved for retirement.

If you are in your forties, you may wish to switch careers or secure a higher-paying, more senior position. However, it is crucial to maintain your debt to a minimum and your savings as high as feasible. You can support your aspirations and enjoy your latter years while saving for retirement. If you want to travel and explore various cultures, you can use your cash savings outside your retirement account.

If you’re uncertain about how much money you’ll need for retirement, you should begin by evaluating your current assets and savings. For example, you can utilize your extra disposable income to eliminate debt, sell your vehicle, increase your homeowner’s insurance deductions, or reduce your landline and telephone costs. In addition, enrolling in Medicare will diminish your out-of-pocket health care expenses, and you can save money by switching to generic versions of brand-name medications.

Consider the impact of inflation on your savings, as it is a critical element of retirement planning. Inflation reduces the purchasing power of money, so twenty or thirty years from now, the money you save now will be worth less. Consequently, it would help to account for inflation when determining your retirement fund. The use of a retirement calculator is advisable for everyone planning for retirement. You may also consult a financial advisor for additional guidance.

It is never too late to begin retirement savings. The secret is to start early. Although saving for retirement in one’s twenties is a good idea, it is never too late to begin investing for retirement. You have plenty of time to optimize the compounding effect of tax-sheltered retirement vehicles, regardless of age. You can start saving at age 35 and gradually increase the amount as you age.

When planning for retirement, evaluating your income and expenses is crucial. Your employer’s contribution match of 5% will provide you with up to $1,250, which is essentially free money. This might be of great assistance in planning for retirement. For instance, if you expect to earn $200,000 annually in retirement, you must save a specific amount now. If you intend to live on this salary for 20 years, you will need to save at least $200,000 a year for retirement.

Some authorities propose that individuals save between 10 and 15 per cent of their income before taxes for retirement. This figure may appear high, but it is a worthy target. In addition, it would be advantageous if you maximized your contributions to any company-sponsored retirement plan. For example, 55% of non-retirees have a 401(k) or 403(b) plan, while 25% do not, according to studies. In conclusion, it is never too late to plan for retirement.

Numerous reasons exist for retiring. One of them is your mental or physical wellness. You should consider quitting if you have health difficulties that can negatively impact your lifestyle. For instance, if you feel stressed and overworked, you may choose to explore a career change. Age is another element that can influence your selection. Although retiring is feasible at any age, evaluating your health before making any final decisions is crucial. But, then, there is never a wrong time to plan for retirement.



Ana Fajardo

Ana Fajardo is a highly skilled and respected financial specialist in Miami.