The Surprising Time To Begin Investing For Retirement

Short answer: there is no “correct” age to begin saving for retirement.

Matt McDonough


Saving enough for retirement seems like an impossibly high mountaintop. One that is so far away, that it is not even worth thinking about. While it can be comforting to ignore problems that you cannot immediately solve, there will be a constant nag in the back of your mind sending the same message: YOU SHOULD PROBABLY GET STARTED ON THIS!

According to Goldman Sachs’ 2022 Retirement Survey & Insights Report, over 50% of Gen X feel they are behind schedule. It’s clear that saving sufficiently for retirement is challenging. However, knowing when to start saving should not be as difficult.

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How To Prioritize Your Retirement

The key to starting is properly prioritizing saving for retirement. Your expenditures priority list can be broken down based on two parameters. The first of which is whether the upcoming spending is to be made in the:

· Short-term,

· Medium-term, or

· Long-term.

The second parameter is the importance of this spending. Is this spending a:

· Luxury,

· Necessity, or

· Somewhere in between?

With these two parameters in mind, you can quickly follow a 3-step process to uncover when you should begin saving and investing for your retirement.

Step 1: Where Does Retirement Fall On Your Priority List?

Parameter 1: when are you going to retire?

Depending on where you are in your career, retirement could be a short, medium, or long time away. However, you must assume that it is somewhere in your future. It is easy to say that you will always work and do not need to worry about retirement savings. This overlooks one crucial variable; retirement may not be your choice.

So, take your best guess at when you will retire, typically somewhere in your 60s, and assess whether that is a short, medium, or long time away for you.



Matt McDonough

Hello! I am a CPA by day, writer by night, and adventurer on the weekends. I’m on the lookout for fun ideas to read, please send anything interesting my way!