Delaying saving for retirement is a bad move.
Here is a simple example. Assume you invest $1,000 at age thirty and not a penny more for 35 years You will then have $7,686. However, if you delay investing for 20 years, you will need to invest $3,200 to have the same $7,686 at age 65.
Young workers should max their savings as soon as possible even if they must cut back during middle age. Let your money work for you.
A recent study by The New School’s Schwartz Center for Economic Policy Analysis found that, among middle-class workers and their spouses currently age 50 to 60, as many as 40% risk falling into poverty or near poverty once retired. Many folks, alas, put off saving for retirement or suffer financial misfortune during their working lives, so they desperately need to stay in the workforce and earn more money to amass a decent-size nest egg. That creates financial stress that could have been avoided if they’d started saving at a much younger age—and it means they miss out on the sense of wellbeing that comes with controlling how you spend your days.