For many Americans, retirement feels far away. It’s something to think about after other financial priorities are handled. But waiting too long to plan can make it harder to reach the comfort and financial stability most people envision for their later years.
Every day, about 11,200 Americans exit the workforce. In 2025 alone, more than 4.1 million Americans will turn 65, highlighting just how many are approaching this major life milestone. The question is: how prepared will they be when that day comes?
The Importance of Starting Early
The foundation of retirement planning basics is simple. Save consistently, invest wisely, and adjust as life changes. Yet despite this simplicity, research shows many Americans fall short of being truly ready for retirement. Fidelity’s Retirement Preparedness Measure (RPM) puts 55% of Americans in the yellow or red zone, meaning they are at risk of not being able to cover essential costs like housing, health care, and food once they stop working.
That statistic simply reiterates why it’s so important to start retirement planning as early as possible. The earlier you begin, the more time your money has to grow through the power of compound interest. Small contributions made consistently over decades can grow into substantial savings. On the other hand, waiting even ten years to begin can mean saving significantly more each month to reach the same goal.
Understanding the Full Retirement Age
Knowing when you can collect full Social Security benefits is a key piece of the retirement puzzle. The full retirement age is 66 for people born between 1943 and 1954. For those born between 1955 and 1960, it gradually increases until it reaches 67.
While you can start collecting benefits as early as age 62, doing so permanently reduces your monthly payment. Waiting until full retirement age, or even later, means a higher monthly benefit, which can make a big difference in your long-term financial stability.
Key Components of Retirement Planning
When you’re learning the retirement planning basics, it helps to break the process into clear components. While everyone’s path will differ based on goals, income, and lifestyle, most plans should include the following:
- Goal Setting: Determine when you’d like to retire, how much income you’ll need, and what kind of lifestyle you want to maintain.
- Budgeting: Estimate your current expenses and how they might change in retirement.
- Savings Accounts: Contribute regularly to tax-advantaged accounts such as 401(k)s, IRAs, or Roth IRAs.
- Investments: Diversify your portfolio to balance growth potential and risk.
- Social Security Planning: Understand how your benefits fit into your broader financial picture.
- Insurance and Health Care: Plan for future medical needs, including long-term care.
- Estate Planning: Prepare documents like wills, trusts, and beneficiary designations to protect your assets.
These elements work together to help you create a comprehensive plan that grows and adjusts over time. RB Wealth Partners can help you evaluate each component to make sure your plan fits your current situation and future goals.
When Should You Start the Retirement Planning Process?
The short answer: right now. Saving early for retirement is the best way to maintain financial independence and security later in life. When you begin saving in your 20s or 30s, you have decades for your investments to grow. But even if you’re closer to retirement age, it’s never too late to make meaningful progress.
People often assume they’ll “catch up later,” but life’s financial demands don’t slow down just because we’re not ready. Mortgages, family expenses, and college tuition can make that difficult. Starting small today is far better than waiting for the “perfect time.” A financial advisor can help you build a plan that fits your current budget and evolves as your circumstances change.
Adapting Your Plan as You Age
A good retirement plan isn’t static. It evolves as your career advances, your family grows, and your priorities shift. The same principles apply whether you’re 30 or 60—your plan should be flexible enough to account for inflation, market fluctuations, and changing personal goals.
For example, someone in their 40s might focus on maximizing 401(k) contributions, while someone in their 60s may shift toward preserving wealth and minimizing risk. Regular check-ins with a financial professional help keep your plan on track, ensuring that adjustments are made in response to both personal and economic changes.
Why Start Retirement Planning Now?
Think of retirement planning as a lifelong process, not a one-time decision. The earlier you begin, the more options you’ll have and the less stress you’ll face later. Delaying can mean working longer or scaling back your post-retirement lifestyle—choices most people would rather avoid.
Starting today helps you:
- Take advantage of compounding returns over a longer period.
- Build flexibility into your savings and investment strategies.
- Gain peace of mind knowing you’re working toward your financial future.
With millions of Americans reaching retirement age every year and more than half uncertain about covering basic expenses, the time to act is now. Start retirement planning today to put yourself in control of your future and build lasting financial stability.
Ready to get started? Contact RB Wealth Partners today.