Northwestern Mutual research shows delayed retirement savings cost Americans years of compound growth and higher contributions later.
U.S. adults begin saving for retirement at an average age of 31, according to Northwestern Mutual research. This delay results in missed years of compound growth, requiring larger contributions later to secure retirement income.
Experts recommend replacing at least 80% of pre-retirement income, but Social Security benefits typically cover only 40%. Starting at 31, rather than earlier, forces savers to compensate for lost growth, increasing the burden of building a sufficient nest egg.
While not irreversible, the mistake demands extra effort to achieve financial security in retirement.