I’m a Financial Expert: 4 Money Moves Middle-Class Retirees Skip — And It’s Derailing Retirement Plans
Written by
Laura Beck
Edited by
Molly Sullivan
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Most retirement planning failures start decades before retirement age. Julie Guntrip, financial wellness expert at Jenius Bank, explained the critical moves middle-class workers skip that can cost them hundreds of thousands in retirement savings.
Starting Retirement Savings Too Late
Guntrip called starting your retirement savings “one of the biggest financial moves people tend to delay.”
“It may feel far off, but the sooner you start, the less heavy lifting you may not need to do later,” she said. “Even modest contributions could grow meaningfully over time thanks to compound interest, which is essentially money earning money on itself.”
The math is staggering. “Starting to save just 10 years earlier could translate to hundreds of thousands of dollars more by retirement,” Guntrip explained.
Someone who starts saving $300 monthly at age 25 versus age 35 could end up with $300,000 to $400,000 more at retirement due to compound growth. That’s not just from saving more money — it’s purely from starting earlier and letting compound interest work longer.
Middle-class workers in their 20s often think retirement is too far away to worry about. That delay costs more than almost any other financial mistake.
Failing To Increase Contributions When Income Rises
Lifestyle inflation kills retirement savings. Guntrip identified this as a critical missed opportunity.
“It’s tempting to let new expenses or lifestyle upgrades take priority, but automatically upping your savings rate by even 1% each year could help keep your goals within reach,” she said.
Most people get 2% to 4% annual raises. Directing just 1% of each raise to retirement accounts means living standards still improve while savings accelerate dramatically.
Guntrip provided specific targets: “A good guideline is to aim to have about 1x your annual salary saved by age 30, 3x by 40, and 10x by retirement.”
Someone earning $60,000 should have $60,000 saved by 30, $180,000 by 40, and $600,000 by retirement. Most middle-class workers fall dramatically short of these benchmarks because they never increased savings rates as income grew.
Not Revisiting Plans as Life Changes
Set-it-and-forget-it retirement planning fails when life circumstances change. Guntrip emphasized the need for regular plan updates.
“The key is to stay engaged with your plan. Revisit your savings and investment choices as your life changes, whether that’s a raise, a move or starting a family,” she advised.
Major life events — marriage, children, job changes, relocations — all affect retirement planning needs and capacity. People who never adjust their plans after setting them up at 25 miss opportunities to optimize as circumstances improve or face problems when expenses increase without plan adjustments.
Guntrip recommended building habits of annual retirement plan reviews. “Building those habits early could make the path to retirement feel much less daunting.”
Focusing Only on Numbers Instead of Freedom
The fourth mistake is purely psychological but affects behavior. Guntrip reframed retirement planning beyond just hitting savings targets.
“Remember that retirement planning isn’t just about reaching a number; it’s about building flexibility and freedom into your future,” she said.
Early saving creates options that go beyond just retiring at 65. “Saving early may give you more choices later, whether that’s retiring on your own timeline, switching careers or taking a break to focus on something new,” Guntrip explained.
This mindset shift makes retirement saving more motivating. You’re not just grinding to hit some arbitrary number. You’re buying freedom: freedom to retire early, change careers without panic, take sabbaticals, or work part time in your 50s.
“The earlier you start, the more control you may have over what those later chapters look like,” Guntrip shared.
Middle-class workers who only think about retirement as “stop working at 65” miss that aggressive early saving creates flexibility throughout life, not just at the end.
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