Start Saving for Retirement Early: Make Time Work for You

Piggy bank against black background

It can be hard to prioritize saving for retirement when it feels far away -- particularly if you have student loans, young kids or dreams of buying a house.

But the fact that retirement seems distant is actually your greatest advantage early in your career. The earlier you start saving, the more time your money has to grow.

The Power of Compounding

If you started putting $10 under your mattress every other week at age 25, you’d have about $10,000 by age 65. That’s without interest or investment earnings.

With the power of compound growth, the money you invest in your retirement savings account can actually grow far more. If you achieved a 5% annual return, your savings would grow to more than $33,000 by age 65, even if you never put aside more than $10 at a time.

Starting early is the key, even if you start small. If you put off beginning your $10 per paycheck contribution until age 35, your savings would only grow to about $18,000 by age 65 with that same 5% annual return.  

Get Started Today

1. Give Yourself a Raise With the Two-for-One Match

Enroll in the Basic Retirement Plan, if you’re eligible and you haven’t enrolled already. The university provides a two-for-one match of your contributions after 12 months of eligible service.

2. Put a Little More Aside  

Open a 403(b) Supplemental Retirement Account with additional automatic payroll deductions, even if it’s only a few dollars per paycheck.

The Bottom Line

Do your future self a favor--get your money growing as soon as you can.