4 Retirement Saving Rules You Can't Afford to Break

Retirement might feel far off for some, but the truth is that your future comfort depends on what you do (or don't do) today.

The good news is, you don't need to be a financial expert or start with a six-figure income. Just follow a few non-negotiable rules, and you'll stay on track for a retirement you'll actually enjoy.

Here are four retirement saving rules you can't afford to break.

1. Start as early as possible

This is the Golden Rule of saving. When you start saving for retirement as early as possible, you give your money decades to grow through compound interest.

If you start saving just $200 a month at age 25 at an 8% return, you'll have around $824,000 by age 67. But if you wait until 35 to start saving the same $200 a month, you'll end up with only about $354,000. That's the power of compound interest.

Even small contributions are better than nothing. Don't wait -- start today.

2. Save 10%-15% of your income

Once you're earning a steady paycheck, you need to aim to set aside 10% to 15% of your gross income each year for retirement. That includes any 401(k) match from your employer, which counts toward your savings rate.

And if your employer offers a 401(k) match, take full advantage. That's free money you don't want to leave on the table.

After earning your match, consider directing additional savings into tax-advantaged accounts like traditional and Roth IRAs, which offer more flexibility and potentially broader investment options.

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3. Automate your contributions

The easiest way to save for retirement is to take the human element out of the equation.

Set up automatic contributions to your 401(k) or IRA so the money goes in before you have a chance to spend it. You can even enable automatic annual increases. Many 401(k) plans will bump your savings rate by 1% each year unless you opt out, making it painless to scale up over time.

4. Don't cash out early

Don't dip into your retirement savings unless there's a legitimate emergency -- and even then, explore all other options first.

Taking money out of your 401(k) or IRA before age 59 1/2 usually means paying income tax and a 10% penalty. You'll also miss out on years of future growth, making it a last resort if you have a medical emergency or anything else that needs immediate attention.

Also, if you change jobs, don't cash out your old 401(k). Instead you can roll it into your new employer's plan so your savings can keep growing tax-deferred. If this all seems overwhelming, you can get matched with up to three fiduciary advisors with our partner, SmartAsset, so you can get professional advice.

Start preparing today

Retirement may be years or even decades away, but the decisions you make now are what shape it. By starting early and saving consistently, you'll set yourself up for a long and comfortable retirement.