By: Joshua Finley

Have you ever put something off for “later” and found that “later” never arrived? It’s a common human habit—one that feels harmless when it comes to small, everyday tasks. But when it comes to retirement planning, procrastination can have significant consequences, potentially leaving you scrambling in your golden years when it’s too late to make up for lost time.
The reality is sobering: procrastination may be quietly delaying your retirement dreams and affecting your long-term financial security. And the stakes are high.

The High Cost of Waiting

Time is money, and nowhere is this truer than in retirement planning. According to data from the National Institute on Retirement Security, over two-thirds of Americans have less than $100,000 saved for retirement, a figure that may fall short of what many will need to sustain a comfortable lifestyle. One major contributor? Delayed action.

Every year you wait to invest in your retirement doesn’t just cost you one year of savings; it can also lead to potentially lower compounding returns. For instance, starting at 25 and saving $500 per month with a 7% annual return could leave you with over $1.2 million by age 65. Wait until age 35 to begin, and that number might drop to just over $600,000. Those ten years of procrastination could cost you a significant portion of your retirement savings.

And yet, procrastination feels deceptively harmless. “I’ll start saving next year,” many think. But the next year becomes the year after that, and suddenly, the window to take full advantage of compounding interest has passed.

Why Do We Delay?

Understanding the psychology of procrastination can help explain why so many people put off something as critical as retirement planning. For many, the very idea of retirement feels abstract—a problem for a future version of themselves. Others may feel overwhelmed by the complexity of retirement planning, from navigating 401(k)s to Roth IRAs and even understanding how much they truly need to save.

“The timeline necessary to achieve your retirement goals depends on your individual circumstances,” says Michael A. Scarpati, Founder & CEO of RetireUS. “Procrastination can be a hindrance to professionals trying to take control of their finances. Don’t dismiss the importance of retirement planning, even if it feels like a distant goal.”

Scarpati’s point highlights a critical truth: waiting to plan isn’t just a financial risk; it can also feel more overwhelming as time passes, making it harder to get started.

Planning for Action

If you’re among the many Americans who have delayed planning for retirement, don’t worry—it’s not too late to take action, but action should be taken as soon as possible. The key is to break down the overwhelming concept of retirement into manageable steps and get started, even if your contributions feel small at first.

“Investing doesn’t just mean putting your money into savings,” Scarpati explains. “It also means seeking guidance from financial professionals who can help identify strategies to meet your goals. Failing to plan early could increase the risk of running out of money later in life.”

Scarpati underscores an important point: financial professionals can be invaluable in helping you understand your options. For example, safe money strategies, such as principal-protected investments or diversified asset planning, may help your savings grow securely, even in volatile markets.

The Dangers of Doing Nothing

For those who think Social Security will bridge the gap, the outlook might not be as optimistic as many expect. With trust fund reserves projected to run out by 2035, future retirees may only receive 83% of their expected benefits. This highlights the importance of taking personal responsibility for retirement planning.

“Waiting to start your investment journey could cost a professional hundreds of thousands of dollars in potential growth,” Scarpati warns. “The longer you are investing in your retirement, the more time your money could have to grow, helping stretch it further in the future.”

The bottom line? Waiting is one of the most costly decisions you can make for your financial future.

Where to Start

If you’re unsure how to begin, tools like retirement calculators and budget planners can offer a helpful starting point. However, these tools are only the first step. Comprehensive retirement planning requires actionable strategies tailored to your specific goals and timeline—something a financial advisor may be able to provide.

Platforms like RetireUS are designed to guide users through this journey, connecting them with independent experts who can create personalized plans. Whether you’re starting later than you’d like or simply looking to optimize your strategy, the resources are available—you just need to take that first step.

Retirement planning doesn’t have to be daunting, but it does require action. Procrastination might seem harmless today, but its effects can compound just like interest—only in the wrong direction. By acting now and seeking the right guidance, you can take control of your future and work toward ensuring your retirement dreams stay within reach.

Disclaimer: This content is for informational purposes only and is not intended as financial advice, nor does it replace professional financial advice, investment advice, or any other type of advice. You should seek the advice of a qualified financial advisor or other professional before making any financial decisions.

Published By: Aize Perez