I Asked ChatGPT How Much You Lose If You Stop Saving for Retirement for Just 1 Year
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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Retirement savings are for the long-haul, which means if you look at your gains from month to month or even in a year’s timeline, your growth might not look like much.
The trick with retirement savings, however, is that they benefit from compound interest growth over time, so the longer you stay invested, the more your money will grow.
I thought it would be interesting to take a look at the implications of not saving for even a short time period, so I asked ChatGPT: How much would you lose if you stopped saving for retirement for just one year?
The Ballpark Answer
ChatGPT started out by giving me a generic, ballpark example:
- Say you normally contribute $6,000 a year to your retirement account.
- If your investments grow at an average of 7% annually, that skipped $6,000 could have grown to about $45,000 over 30 years.
- Skip two years, and you’ve lost closer to $90,000 in future value.
Thus, the AI pointed out, even though it feels like you’re only pausing a relatively small contribution now, “the long-term cost is many multiples larger because of compound interest.”
However, to get more granular with this, I asked the AI to then extrapolate how those lost savings would add up based on different age groups.
Losses Over Time by Age
- Age 30: Around $64,000 lost by retirement
- Age 40: Around $32,500 lost by retirement
- Age 50: Around $16,500 lost by retirement
As you can see, skipping just one year of retirement savings can cost you tens of thousands of dollars later, depending on how long you have until retirement and your typical rate of return.
What To Do If You Miss a Year
All that said, life happens. Maybe you had a big medical expense, helped a kid pay for a year of college or just needed to pause. Missing a year of retirement contributions isn’t the end of the world, but the sooner you get back on track, the less impact it will have. ChatGPT suggested that if it happens to you, here are some expert-backed recommendations for getting back on track:
1. Restart as Soon as Possible
Even if you can’t put in your usual contribution, anything is better than nothing. A few thousand dollars invested now will still compound more than waiting until next year.
2. Make Partial or Catch-Up Contributions
If you’re under the age of 50, you can contribute up to $6,500 annually to an IRA in 2025. If you’re 50 or older, you get an extra $1,000 in catch-up contributions. That can help offset a year you missed.
3. Use Windfalls Wisely
Redirect unplanned for money such as from tax refunds, bonuses or side gig income into retirement accounts.
4. Automate Contributions
One of the easiest ways to avoid skipping a year is to set up automatic transfers from your checking account or paycheck. That way, saving happens without you having to think about it.
5. Adjust Lifestyle Spending
Small trims to your monthly budget, such as cutting unused subscriptions or eating out less often, can free up money to put back into retirement.
The Takeaway
When it comes to retirement planning, time is your most valuable asset. Skipping even one year of savings can translate into tens of thousands of dollars lost later, especially if you’re younger. However, your retirement plan doesn’t have to be built on enormous contributions, it just has to be steady.
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