Spoiler alert: Earlier than you think.

Retirement feels like something that happens to other people. Old people. Future people. People who wear cardigans and complain about the weather.

When you're 25, retirement is so far away it might as well be science fiction. When you're 35, it's still on the horizon somewhere but you've got more pressing things to worry about. When you're 45, you start doing the math and realizing you might be in trouble.

And when you're 55? Well, now you're really worried.

Here's the truth. Most people start thinking seriously about retirement way too late. They assume they have time. They assume they'll catch up later. They assume everything will work out.

And then one day they wake up, they're 60 years old, and they realize they're nowhere near ready to retire.

So when should you actually start worrying about retirement? What should you be doing at each stage of your life to make sure you're on track?

Let's break it down by age. Because what you need to focus on at 25 is very different from what you need to focus on at 55.

In Your 20s: Plant the Seeds

If you're in your 20s, retirement probably feels completely irrelevant. You're worried about student loans. You're trying to figure out your career. You're living paycheck to paycheck and wondering how anyone affords anything.

But here's the thing. Your 20s are the most powerful decade for retirement savings. Not because you have a lot of money. But because you have a lot of time.

Every dollar you save in your 20s has 40 years to grow. That's 40 years of compound interest. That's how a little bit of money now turns into a lot of money later.

Let me give you an example. If you save $200 a month starting at age 25, and you earn an average 7% return, by the time you're 65 you'll have about $525,000.

If you wait until you're 35 to start saving that same $200 a month, you'll only have about $244,000 by 65.

Same monthly contribution. But waiting 10 years costs you over $280,000. That's the power of compound interest. And that's why your 20s matter so much.

What you should be doing in your 20s:

Contribute to your 401k, especially if your employer offers a match. That match is free money. If you're not taking it, you're leaving money on the table.

Start with whatever you can afford. Even if it's just 3% or 5% of your paycheck. The habit matters more than the amount right now.

If you don't have access to a 401k, open a Roth IRA. You can contribute up to $7,000 a year (as of 2024). Even if you can only do $50 or $100 a month, do it.

Don't worry about getting fancy with your investments. Keep it simple. A target-date fund or a basic mix of stock index funds is fine.

The goal in your 20s is not to save a ton of money. The goal is to build the habit of saving and let time do the heavy lifting.

In Your 30s: Get Serious

By your 30s, life has probably gotten more complicated. You might be married. You might have kids. You might have a mortgage. You've got a lot of financial demands competing for your attention.

This is the decade where a lot of people fall off the retirement savings wagon. They stop contributing to their 401k because they need the cash flow for other things. Or they tell themselves they'll catch up later.

Don't do that.

Your 30s are when you need to get serious about retirement. You're probably earning more than you did in your 20s. You've got some career momentum. This is the decade to start ramping up your savings rate.

A general rule of thumb: by age 30, you should have about one year's salary saved for retirement. By 35, you should have about twice your salary saved.

Now, a lot of people hear that and panic because they're nowhere close. That's okay. These are benchmarks, not requirements. But they give you a target to aim for.

What you should be doing in your 30s:

Aim to save at least 10% to 15% of your income for retirement. If you're not there yet, work your way up. Increase your contribution by 1% every year until you hit that target.

Max out your employer match if you haven't already. Seriously. This is non-negotiable.

If you get a raise, immediately increase your 401k contribution. Don't let lifestyle creep eat up your entire raise.

Review your investment mix. You've still got 30+ years until retirement, so you can afford to be aggressive. But make sure you're not taking on more risk than you're comfortable with.

If you have kids, start thinking about how you're going to balance saving for college with saving for retirement. Here's a hint: retirement comes first. Your kids can get loans for college. You can't get loans for retirement.

The goal in your 30s is to establish a sustainable savings rate and stick to it no matter what else is going on in your life.

In Your 40s: Make Up Ground

Your 40s are often your peak earning years. You're probably making more money than you ever have. You've got experience. You've got skills. You've (hopefully) got some career stability.

This is the decade to make up for lost time if you got a late start on retirement savings. This is when you need to get aggressive.

The benchmark here: by age 40, you should have about three times your salary saved. By 45, you should have about four times your salary. By 50, about six times.

If you're not on track for those numbers, don't panic. But do take it seriously. You've still got time to course-correct, but the window is narrowing.

What you should be doing in your 40s:

Push your savings rate as high as you can comfortably go. If you're at 10%, try to get to 15%. If you're at 15%, try to get to 20%.

Max out your 401k if possible. The contribution limit for 2024 is $23,000. If you can get anywhere close to that, do it.

Once you hit age 50, you're eligible for catch-up contributions. That's an extra $7,500 you can put in your 401k on top of the regular limit. Use it.

Rebalance your portfolio. You've still got 15 to 25 years until retirement, so you don't need to get too conservative yet. But you should start thinking about reducing risk gradually as you get closer to retirement.

Run the numbers. Use a retirement calculator to figure out if you're on track. If you're not, figure out what you need to do to get there.

Consider meeting with a financial advisor if you haven't already. Your situation is getting complex enough that professional guidance can make a real difference.

The goal in your 40s is to maximize your savings while you're in your peak earning years. This is the last decade where you can really move the needle through aggressive saving.

In Your 50s: Get Real About the Finish Line

By your 50s, retirement is no longer some abstract concept in the distant future. It's real. It's close. You can see it from here.

This is the decade where you need to get very specific about your retirement plan. When do you want to retire? What's your retirement going to cost? How much do you need to save? Are you on track or do you need to make adjustments?

The benchmark: by age 50, you should have about six times your salary saved. By 55, about seven times. By 60, about eight times.

If you're not hitting these numbers, you've got some decisions to make. Can you save more? Can you work a few extra years? Can you adjust your retirement lifestyle expectations?

What you should be doing in your 50s:

Max out your 401k contributions including catch-up contributions. If you're 50 or older, you can contribute up to $30,500 in 2024. Do everything you can to hit that number.

Get serious about projecting your retirement expenses. What's your mortgage going to be? What about healthcare? Travel? Hobbies? You need to know what your retirement is actually going to cost.

Figure out your Social Security strategy. When are you going to claim? Do you understand how your claiming age affects your benefit? This is a big decision that can make a huge difference in your retirement income.

Start thinking about asset allocation more carefully. You don't want to be too aggressive this close to retirement, but you also don't want to be so conservative that your money doesn't grow. This is where professional advice really helps.

Review your estate plan. Do you have a will? Do you have beneficiaries listed on all your accounts? Is everything up to date? This stuff matters.

Consider healthcare costs. If you retire before 65, how are you going to cover health insurance? Medicare doesn't start until 65, so you need a plan for the gap years.

The goal in your 50s is to finalize your retirement plan and make sure all the pieces are in place. No more kicking the can down the road. This is when you need to get very specific and very realistic.

In Your 60s and Beyond: Execute the Plan

If you're in your 60s, retirement is either here or it's right around the corner.

The benchmark: by age 67 (full retirement age for most people), you should have about 10 times your final salary saved.

Now, if you're not there, don't freak out. This is a general guideline. Your actual needs depend on your lifestyle, your expenses, your Social Security benefit, whether you have a pension, and a bunch of other factors.

But it does give you a sense of whether you're in the ballpark or way off.

What you should be doing in your 60s:

If you're still working, keep maxing out your contributions. Every extra dollar you save now is one less dollar you have to pull from your savings in retirement.

Finalize your Social Security claiming strategy. This is a big decision. Do not just claim at 62 because you can. Understand the trade-offs.

Create a withdrawal strategy. How much are you going to take from your accounts each year? In what order are you going to tap different accounts? This matters for taxes and for making your money last.

Sign up for Medicare at 65. Do not miss your enrollment window. Late enrollment comes with penalties.

Adjust your asset allocation to be more conservative. You're no longer saving for retirement. You're in retirement or about to be. You need to protect what you've built.

Think about required minimum distributions (RMDs). Once you hit age 73, you have to start taking money out of your traditional retirement accounts whether you need it or not. Plan for the tax implications.

The goal in your 60s is to execute the retirement plan you've been building for decades. Make sure the transition from working to retirement goes smoothly.

What If You're Way Behind?

Look, a lot of people read these benchmarks and realize they're nowhere close. Maybe you started late. Maybe you had some financial setbacks. Maybe you just didn't prioritize retirement savings.

Whatever the reason, you're behind. What do you do?

First, don't panic. Panicking doesn't help. You need a plan, not a meltdown.

Second, figure out where you actually stand. Run the numbers. Use a retirement calculator. Talk to a financial advisor. Get a realistic picture of your situation.

Third, look at your options. Can you increase your savings rate? Can you work a few extra years? Can you reduce your planned retirement expenses? Can you pick up a side income in retirement?

Fourth, get aggressive about cutting expenses and maximizing savings now. If you're 55 and you're way behind, you don't have the luxury of waiting. You need to make some hard choices and make them soon.

And fifth, be realistic. If the math doesn't work, you might need to adjust your retirement expectations. Maybe you retire at 67 instead of 62. Maybe you work part-time in retirement. Maybe you downsize your lifestyle.

None of this is fun. But it's better to deal with reality now than to hit retirement age and realize you can't afford to retire.

The Bottom Line

So when should you start worrying about retirement?

The answer is: right now. Whatever age you are. Whatever your situation.

If you're in your 20s, start saving even if it's just a little bit. Build the habit. Let compound interest work for you.

If you're in your 30s, get serious about your savings rate and stick with it.

If you're in your 40s, maximize your peak earning years and save aggressively.

If you're in your 50s, get specific about your retirement plan and make sure all the pieces are in place.

If you're in your 60s or beyond, execute the plan and make the transition as smooth as possible.

The worst thing you can do is ignore retirement until it's too late to do anything about it.

The best time to start planning for retirement was 20 years ago. The second best time is today.

Don't wait. Start now. Your future self will thank you.