It's Just One Year. Delaying Retirement Savings: What's the True Cost?

by: Gina Cannady | April 27th, 2016 | Personal Finance
You are young. Just out of College. Why should you worry about retirement NOW? Maybe you can begin saving next year, right?

When you are just beginning your career, the thoughts of retirement are the last thing on your mind.  However, the earlier you begin to save, the more you can save…. and live retirement in style.

Many financial councilors advise that you will need 70% of your pre-retirement income to maintain your current lifestyle during retirement. The math is simple: Early savings = bigger nest egg. Delayed Savings = smaller nest egg.

But how much can delaying just one year truly cost?

Fidelity Investor’s Weekly presented the following information on the impact of delaying retirement planning by only one year.

The examples compare the growth of a pre-tax Traditional IRA (Individual Retirement Account), assuming an annual deposit of $4000 until age 70, with a 7% interest rate.

  • Begin to save at 20; total savings would be $1,866,020.
  • Begin to save at 21; total savings would be $1,739,944.
  • Cost of waiting one year: $126,076.


  • Begin to save at 30; total savings of $918,529.
  • Begin to save at 31; total savings would be $854,438.
  • Cost of waiting one year: $64,091.


  • Begin to save at 40; total savings would be $436,873.
  • Begin to save at 41; total savings would be $404,292.
  • Cost of waiting one year: $32,518.


Delaying Retirement saving by just ONE YEAR can have a significant impact on your future. Although you may be just beginning your career, saving today can help create a brighter tomorrow.

Begin Early. Save Steadily. Retire in Style.


Contact a Financial Institution or Financial Advisor for more information on Retirement Savings.



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