5 Retirement Planning Mistakes That Could Cost You Thousands

Mistake 1: Starting Too Late The most costly retirement planning mistake is simply not starting early enough. Thanks to compound interest, money invested in your 20s has decades to grow. Waiting even 10 years to start can cut your retirement savings in half. If you invest $300 per month starting at age 25 with an average 7% annual return, you will have approximately $567,000 by age 60. Start at 35, and you will have only about $264,000 — less than half, despite contributing for just 10 fewer years. Mistake 2: Not Taking Full Advantage of Employer Matching If your employer offers a 401(k)…