Many Americans wait too long to start saving for retirement, missing out on compound interest

From Yahoo Finance: 2025-06-29 10:00:00

When it comes to planning for retirement, many Americans struggle to calculate how much they need to save. A common mistake is waiting too long to start saving, even in your 20s and 30s. This delay can cost hundreds of thousands in lost compound interest. Experts advise starting now, even with small amounts like $50-$100 per month.

Another mistake is fixating on reaching a savings number instead of creating a reliable income strategy for retirement. This approach overlooks important factors like tax planning, inflation projections, and a clear withdrawal order. Experts recommend treating retirement as a paycheck replacement plan, identifying income sources to support your lifestyle over 20-30 years.



Read more at Yahoo Finance: This Is the No. 1 Mistake Americans Make When Planning for Retirement