A good age to start pension plans

[TMBGfan]

I noticed a few posts in here by people in their early twenties dealing with debt difficulties, and I read an article this morning in Telegraph saying that one in three Britons between 28 and 40 plan to rely on inheritance for their pensions.

Obviously it will depend on a number of different factors, the most important being your income vs debt situation, but what age did people here start or plan to start saving for their pension?

[swanson719]

DW and I started our Roth's separate from my military pension when I was 21 and she was 24. We don't put a lot into it because during that time we paid off all but the house and are working through our big EF right now, but both Roth's still get at least $100 a month. Military pensions are still 20 years and out, and don't require financial contributions to get. If you do over 20 years, each additional year gives you an extra 2.5% of your base pay. So 22 years would be 55% instead of 50%. Not much of an incentive when you can go work for the government somewhere making what you did working and pick up 30 years there, so you can retire at 68 and double dip retirements.

[puck36]

I noticed a few posts in here by people in their early twenties dealing with debt difficulties, and I read an article this morning in Telegraph saying that one in three Britons between 28 and 40 plan to rely on inheritance for their pensions.

Obviously it will depend on a number of different factors, the most important being your income vs debt situation, but what age did people here start or plan to start saving for their pension?

Do you have a link to that article?

[disneysteve]

I entered the workforce in 1993 and I believe I opened my IRA in 1995. I would have been 31 at the time.

[feh]

We started saving for retirement in our mid-20s, after we had purchased a house.

[stevenrokz]

Well, We scheduled our saving when i was 30 & she was 28. It worked & now i am into my 40s. One should always plan for the future.

[Joan.of.the.Arch]

I think I was 26 and husband was 32. It was not until those ages that we were really into --erm, no explanation will be offered here-- the normal work force.

[Caoineag]

I was 26 when I really got started and DH was 24. I still feel like we are behind the eight ball but we are starting to catch up.

[MonkeyMama]

I believe I opened an IRA when I was 16 or 17, but I didn't contribute again until I graduated college (age 22). Immediately after college, I contributed to my 401k and my spouse opened his first IRA (same age).

I think everyone's situation is different, but I didn't find my teens/college years the time to save for retirement. I suppose if I had a windfall. I was too busy trying to pay cash for college as I went. Immediately out of school we bought a home, and then shortly after had children. We didn't give much *thought* to retirement until our late 20s - now we try to contribute more with time. Before, we put in 10% "because we were supposed to" or maxed out IRAs solely for the tax breaks. I'd say around age 29 or 30, retirement became a much higher priority. Primarily because we were no longer paying for college, saving for a home, or saving money for time with the little kids, etc.

[kork13]

Bottom line: the earlier you start, the easier it will be. In general, I would say that most people probably should start sometime in their 20's.

I started with mine when I was 20 y/o, and I'm in a very good position because of it. Someone who doesn't start until they're 40 will have a much harder time, because they need to make up for alot of lost time. It can still be done, but will require much more aggressive saving.

[jefffou]

I was kind of a late bloomer.....I believe I was about 30-years old before I "got it".

At some point, the light came on and my wife and I realized that there would be nobody to do this for us.

Jeff

[am_vanquish]

I opened my Roth IRA with the first scholarship stipend check I received my freshman year of college - I was 18 years old. I maxed out the contribution that first year, then focused on a cash cushion my next 2 years. I graduated in '08 and maxed out the contributions for '08 & '09.

My employer does not offer an employer-funded pension plan, but they do match 6% in a 401(k).

[Beppington]

I started working fulltime in 1986 at age 18. I was still a personal finance dummy in 1990 when the small company I work for set up a company retirement plan. I barely paid attention when I got my first retirement account statement, as the contribution for me was "only" $1,865, which was nice, but after all I couldn't touch it for 43 years or so, so what did I care?

I care now: The account's value is about $240K.

To answer your question, though: The earlier the better.

[Mike75]

I would say arund 28 years of age. I wish that was when I started But I am 10 years too late

[TMBGfan]

Do you have a link to that article?

Yes but I have too few posts to post it.

Telegraph dot co dot uk slash finance/personalfinance/7146562/Britons-desire-to-stay-young-sees-them-refusing-to-save-for-the-future.html

I'm not sure starting as early as possible is such a good idea. In their early 20s most people have student debts to pay off and are living in rented accommodation. I prefer feh's idea of starting once you have purchased a house.