Retirement feels far away when you’re in your 20s or 30s. Money is tight. You figure there is plenty of time. But the truth is, every year you wait makes it harder to catch up.

How Bad Is the Problem?

A National Institute on Retirement Security study found that 66% of Millennials have nothing saved for retirement. Those who have? Their average balance is just $23,000. Gen X isn’t feeling much better — 20% have no savings, and 61% worry about their financial security. And Gen Z? A recent TIAA Institute study found that just 1 in 5 have started saving, while 35% admit they have no idea where to begin.

If you’re telling yourself, “I’ll start later,” you’re not alone. But waiting has a cost. The good news? No matter where you are in life, you can take action now.

The Power of Compound Growth.

Many people think they can’t afford to save. Rent, groceries, student loans. It all adds up. But even small, consistent contributions can turn into serious money over time.

When you invest, you don’t just earn returns on your contributions. You earn returns on those returns, creating a snowball effect. The sooner you start, the less you need to save to reach your goal.

Don’t Leave Free Money on the Table

One of the fastest ways to build your retirement savings? Take full advantage of your employer’s 401(k) contribution. Check if your employer offers a 401(k) match—a percentage of your salary contributed just for participating. If you put in 3%, and they match your contribution, you double your savings instantly. Over time, compound growth can turn those contributions into a significant retirement fund.

If you are not contributing to your 401(k) with an employer match, you’re passing up free money that could help build your future.

It’s Never Too Late: Catch-Up Contributions Can Help

Think you’ve missed your chance to build a solid retirement? Think again. If you’re 50 or older, the IRS allows you to contribute extra to retirement accounts, helping you save more as you get closer to retirement.

Here’s what the 2025 limits look like, but make sure to consult a tax professional to understand how these limits apply to your specific situation and maximize your retirement savings strategy.

• 401(k) Plans: If you’re 50 or older, you can contribute an extra $7,500, bringing your total limit to $31,000.
• New for 2025: If you’re between 60 and 63, the SECURE 2.0 Act raises this another $11,250, bringing your total limit to $34,750.
• IRA Accounts: If you’re 50 or older, you can add an extra $1,000 for a total of $8,000.

These higher limits help you catch up, lower taxes, and grow your savings faster. Even if you’re behind, starting now makes a difference. Maximize every dollar and take advantage of what’s available.

The Bottom Line: Start Now, No Matter Where You Are

The best time to start saving? Yesterday. The second-best? Right now.

• In your 20s or 30s? Start small, be consistent, and let compounding do the heavy lifting.
• In your 40s? Increase contributions, max out your employer match, and refine your strategy.
• In your 50s or beyond? Use catch-up contributions to boost your savings and close the gap.

Get started today. Your future self will thank you.

Need a Game Plan? Dream Big. We Got You.

No matter where you are in your savings journey, Frontwave Credit Union has your back. Whether you’re just getting started, maximizing contributions, or fine-tuning your retirement strategy, we provide the tools, resources, and support to help you succeed.

Make the most of your financial future with:

• 1-on-1 financial coaching for personalized guidance
• Financial wellness resources to keep you on track
• Webinars and workshops with GreenPath Financial for expert insights
• Frontwave Investment Services to help grow and manage your wealth

Let’s build your future together. Reach out today to take the next step!