When it comes to building a secure financial future, few topics generate more anxiety—or more confusion—than retirement planning. For many people, the question isn’t whether to save for retirement, but when.
Is it better to start saving early, even in small amounts? Can someone who starts late still catch up and retire comfortably?
Entrepreneur and financial strategist Shalom Lamm has helped individuals and business owners navigate these very questions. His insight is clear:
“Starting early gives you the gift of time and compounding. But starting late doesn’t mean game over—it just means a different strategy.”
In this post, we’ll break down the key differences between starting early vs. starting late with retirement planning, explore real-life scenarios, and share Shalom Lamm’s expert guidance to help you plan your future—no matter your age.
The Power of Starting Early: Time is Your Greatest Ally
If there’s one universal truth in retirement planning, it’s this: the earlier you start, the easier it becomes.
Let’s look at a simple example.
- Sarah starts saving at age 25, contributing $300/month into a retirement account earning 7% annually.
- She saves consistently for 40 years.
- By age 65, she has approximately $725,000.
Now compare that to:
- James starts saving at age 40, contributing $600/month (double Sarah’s amount).
- He saves for 25 years at the same 7% return.
- By age 65, he ends up with just over $400,000.
Shalom Lamm explains:
“Compound interest doesn’t reward how much you save—it rewards how long your money has to grow. Even modest contributions in your twenties can outperform large contributions made later.”
This concept is why Lamm encourages young professionals—even those still paying student loans or working entry-level jobs—to start small and start now. A few dollars today can mean hundreds of thousands later.
Early Planning Benefits Beyond Money
The advantages of early retirement planning aren’t just financial.
1. More Flexibility
Early savers can take more risks with their investments, explore options like real estate or entrepreneurship, and adjust plans without panic.
2. Less Stress Later
People who start early avoid the emotional burden of “catching up.” There’s peace of mind in knowing you’re on track.
3. Room for Life Changes
Early planners are better prepared for career breaks, raising kids, or unexpected expenses.
Shalom Lamm notes:
“The goal of early planning isn’t to retire early—it’s to live with options. And options create freedom.”
The Reality of Starting Late: It’s Tougher, But Not Hopeless
Of course, not everyone starts early. Life gets in the way—student loans, job instability, family responsibilities, or simply not knowing where to begin.
Lamm is clear:
“If you’re in your 40s or 50s and just starting, don’t despair. The key is urgency, strategy, and discipline.”
Late Starters Need to Focus On:
1. Aggressive Saving
If you’re behind, you’ll need to save more than the standard 15%. Many financial advisors recommend pushing toward 25–30% of your income.
2. Maximizing Tax-Advantaged Accounts
- Contribute the maximum to your 401(k), especially if your employer matches.
- Open and max out a traditional or Roth IRA.
- Take advantage of catch-up contributions available to people over 50.
3. Minimizing Lifestyle Inflation
This is especially important for late starters. Lamm advises:
“Resist the urge to upgrade your life with every pay raise. Live lean and redirect the extra into retirement savings.”
4. Delay Retirement If Needed
Working a few more years can dramatically increase your retirement fund and reduce the number of years you’ll need to draw from it. It also allows your Social Security benefits to grow.
The Emotional Side of Retirement Planning
Whether you’re starting at 25 or 55, retirement planning isn’t just about math. It’s about mindset.
Shalom Lamm emphasizes the importance of emotional discipline, especially during economic uncertainty.
“Market dips, inflation, and fear can derail even the best plans. But the worst thing to do is nothing. Consistent action—especially during hard times—is what builds long-term security.”
He encourages people to tune out panic headlines and focus on the long-term goal: financial independence and peace of mind.
Business Owners and Retirement Planning
As an entrepreneur himself, Shalom Lamm knows that small business owners often neglect retirement planning—pouring every dollar into their company, assuming it will fund their retirement.
“Your business is an asset, yes—but it’s not a guaranteed pension,” Lamm warns.
He advises business owners to:
- Set up SEP IRAs or Solo 401(k)s
- Automate contributions just like employees do
- Create a succession plan and a business exit strategy
Diversifying outside the business ensures entrepreneurs don’t have all their eggs in one basket when it’s time to step away.
Tools and Tactics for Every Age
Regardless of when you start, these universal tools can help anyone on their retirement journey:
- Budgeting Apps: Use YNAB, Mint, or Personal Capital to track spending and identify savings potential.
- Financial Advisors: A fiduciary planner can help you create a personalized plan.
- Target-Date Funds: Great for those who want simple, automated investing.
- High-Yield Savings Accounts: Ideal for emergency funds, which prevent you from dipping into retirement early.
Shalom Lamm also recommends annual financial reviews—check-ins to adjust contributions, rebalance investments, and evaluate goals.
“Just like a business reviews performance annually, your finances deserve the same attention.”
Final Thoughts from Shalom Lamm
Whether you’re in your 20s with decades ahead of you or your 50s wondering if it’s too late to start, one principle applies to all: action beats inaction.
Lamm sums it up perfectly:
“The best time to start saving for retirement was yesterday. The second-best time is today.”
The key is to start where you are—with whatever you have—and commit to consistency. Small changes now can lead to major results down the road.
Because in the end, retirement isn’t just about money. It’s about freedom, dignity, and the ability to live life on your own terms.