It's the personal finance question that echoes through every career stage, from the first job offer to the final countdown to retirement: When should I start? The advice from experts is unanimous, but the sheer power of the math behind it is often understated. The single most important factor in building a secure retirement isn't your investment genius or even your savings rate—it's time.

The Short, Unambiguous Answer

The best time to start planning and saving for retirement was the day you got your first paycheck. The second-best time is today. No matter your age—22 or 52—beginning now is the most critical financial decision you can make for your future self.

The Stunning Power (and Cost) of Compound Interest

Albert Einstein famously called compound interest the "eighth wonder of the world". It's the process where your investment earnings generate their own earnings, creating a snowball effect over decades. This exponential growth is why starting early, even with small amounts, is so transformative.

The $700,000 Lesson: Early vs. Late Starter

A clear comparison shows why a 10-year delay is so devastating.

Age 25 The Early Starter
Saves $400 per month ($100/week).
Stops contributing at age 35.
Total contributed: $48,000.
At 65: ≈$1.07 Million
Age 35 The Late Starter
Saves $400 per month ($100/week).
Contributes consistently for 30 years.
Total contributed: $144,000.
At 65: ≈$306,000

The late starter saves 3 times more money from their pocket but ends up with less than a third of the wealth. The $96,000 difference in contributions becomes a $764,000 gap in final savings. That's the astronomical cost of waiting.

Your Decade-by-Decade Roadmap to Retirement Readiness

Knowing you need to start is one thing; knowing *what* to do at each stage is another. Here is your actionable guide, with key savings targets to aim for.

The Wealth-Building Timeline

20s The Foundation
Target: Save 1x your annual salary by age 30.

Your greatest asset isn't money—it's time. Your 20s are for building the habit. Enroll in your employer's 401(k) immediately, especially if there's a match—it's free money. Automate contributions so saving happens without thought. Because you have decades to recover from market dips, you can afford an aggressive, growth-oriented portfolio. Don't let student loans or a modest entry-level salary be an excuse; starting with just $50 or $100 a month harnesses the power of compounding from day one.

Action Steps for Your 20s:

  • Enroll in your workplace 401(k) and contribute at least enough to get the full employer match.
  • Open an IRA (Roth or Traditional) for additional tax-advantaged savings.
  • Build a basic budget and make retirement savings a fixed "expense".
  • Invest in financial literacy—read books, take courses, and understand what you're investing in.
30s The Acceleration
Target: Save 3x your annual salary by age 40.

Career and income typically grow in your 30s. This is the decade to systematically increase your savings rate. Aim to save 15% of your gross income for retirement. Every raise or bonus presents a prime opportunity to boost your 401(k) contribution by 1% before you get used to the extra cash. Aggressively pay down high-interest debt (like credit cards) to free up more cash flow for investing. Diversify your portfolio and consider consulting a financial professional to ensure your strategy aligns with growing responsibilities, which may include a family or home.

Action Steps for Your 30s:

  • Increase your retirement savings rate to at least 15% of your income.
  • Use "raise hacking"—increase 401(k) contributions with every salary bump.
  • Prioritize eliminating high-interest debt.
  • Consolidate and track any old retirement accounts from previous jobs.
40s The Power Decade
Target: Save 6x your annual salary by age 50.

You are likely at or near your peak earning potential. This is the time for a serious retirement check-up. Work with a financial advisor to stress-test your plan. Calculate your projected retirement income gap and create a strategy to fill it. Be mindful of lifestyle inflation and avoid taking on significant new debt. If you're behind, your 40s are the critical window to ramp up savings dramatically before catch-up contributions become available at 50.

Action Steps for Your 40s:

  • Conduct a formal retirement projection to identify any savings gap.
  • Maximize all available retirement account contributions.
  • Focus on career advancement and income growth to boost savings capacity.
  • Begin serious planning for future healthcare costs.
50+ The Final Push
Targets: 8x salary by 60, 10x salary by 67.

The IRS gives you a powerful tool: catch-up contributions. In 2026, you can contribute an extra $8,000 to a 401(k) (on top of the $24,500 limit) and an extra $1,100 to an IRA. Use them aggressively. This is also the time to refine your retirement vision, plan your Social Security claiming strategy (delaying until 70 can increase benefits by 76% compared to taking them at 62), and shift your investment portfolio to a more conservative asset allocation to protect your accumulated wealth.

Action Steps for Your 50s & Beyond:

  • Maximize catch-up contributions to all retirement accounts.
  • Develop a detailed Social Security and pension claiming strategy.
  • Shift investment portfolio to a more conservative, income-focused mix.
  • Create a comprehensive estate plan and finalize your retirement budget.
40% The portion of pre-retirement income Social Security is designed to replace. Most people need 70-100%.
$148k The average 401(k) balance in 2024—a record high, but often insufficient for a long retirement.
Age 65 When most people become eligible for Medicare. Retiring earlier requires a plan for healthcare.
Age 59½ The earliest age for penalty-free withdrawals from 401(k)s and Traditional IRAs.

What If You're Getting a Late Start? (It's NOT Too Late)

If you're reading this in your 40s, 50s, or later with little saved, don't panic. The message isn't one of despair, but of urgent, focused action. While you've missed the early compounding years, you still have powerful levers to pull.

Your Late-Start Action Plan

All is not lost. Focus on these powerful strategies to close the gap.

Supercharge Savings Drastically increase your savings rate. Target 20-25% of income or more. Slash discretionary spending and direct every extra dollar to retirement accounts.
Use Catch-Up Contributions If you're 50+, legally contribute thousands more each year to 401(k)s and IRAs. This is your most powerful tool.
Delay Retirement Working 3-5 extra years has a triple benefit: more time to save, less time your savings need to last, and higher Social Security benefits.
Optimize Social Security Delay claiming until age 70 if possible. This can increase your monthly benefit by 76% compared to claiming at 62.

So, When Should You Start?

If you take one thing from this guide, let it be this: The perfect time to start retirement planning does not exist. There will always be competing financial priorities—student loans, a mortgage, childcare. Waiting for the "right time" is the most expensive retirement mistake you can make.

The answer isn't just "early." The answer is now. Whether you're 25 saving your first $100 or 55 making a final, powerful push, the most important step is the one you take today. Your future self will thank you for it.