When people think about retirement planning, they often focus on account balances. How much have I saved? Am I behind? Am I on track?
Recent research suggests a different lens may matter more early on: confidence.
I was recently quoted in a new article from Nationwide Retirement Institute, which analyzed how younger savers are approaching retirement differently than previous generations. The findings reinforce something we see consistently in practice: when people start saving earlier, they don’t just accumulate more money — they feel more prepared.
The Confidence Gap Is Real
Analysis of Nationwide Retirement Institute research by my team at The American College of Financial Services highlights just how meaningful an early start can be.
Among individuals who began saving for retirement by age 25:
- 75% report feeling confident or cautiously optimistic about their retirement future
By contrast, among those who started later:
- Only 46% report feeling the same way
That’s a 30-point confidence gap tied largely to when people started — not how much they had saved at the time.
Even when looking beyond that cutoff, the pattern holds. Those who feel optimistic about retirement generally began saving around age 30 or earlier. Those who feel anxious or pessimistic tended to start closer to age 32 or later.
The difference is small in years, but large in impact.
Why Timing Affects Confidence
The takeaway from this research is not that late starters are doomed. It’s that behavior shapes mindset.
Starting earlier does a few important things:
- It builds familiarity with saving and investing
- It normalizes market ups and downs
- It creates a sense of momentum
Over time, that momentum translates into confidence. People who start earlier tend to view retirement as something they are actively preparing for, rather than something they hope will work out.
As I shared in the article:
“The lesson is simple: don’t wait for the perfect moment or the perfect amount to start saving. Building the habit early — even with modest contributions — sets the foundation for decades of confidence and better retirement readiness.”
That foundation matters just as much as the math.
What This Means for Planning
For younger savers, the goal should not be to hit an arbitrary dollar target early in life. Instead, the priority is to:
- Start saving as soon as practical
- Make contributions automatic
- Increase savings gradually as income grows
Confidence doesn’t come from one big decision. It comes from repeated, manageable actions that reinforce the feeling of progress.
For those who started later, the research is still encouraging. Confidence is not fixed. It can improve with structure, clarity, and a plan that aligns savings with real future spending needs.
Bringing Confidence Into the Conversation
At Stockbridge, we see retirement planning as more than optimizing returns. A good plan should reduce anxiety, create clarity, and help people feel prepared for what comes next.
The Nationwide research reinforces that idea. Confidence is not an abstract concept. It is shaped by habits, decisions, and how early people begin engaging with the process.
If you’re unsure whether you’re “behind,” a more useful question may be: Do I have a plan that helps me feel confident about the future? That question often leads to better decisions than comparisons alone.
You can read the full Nationwide article here:
👉 New Year, New Savings: Young Savers Are Avoiding the Mistakes Older Savers Regret — You Can Too
About the Author
Eric Ludwig, PhD, CFP®, is a retirement income specialist and founder of Stockbridge Private Wealth Management, based in Sun Prairie, Wisconsin, serving clients throughout the Madison area and nationally. He is also Director of the Center for Retirement Income at The American College of Financial Services.