hen Should San Diegans Start Saving for Retirement? Early is Key

Hello, I’m Elisabeth Dawson. For more than 24 years, I’ve had the honor of helping individuals and families navigate their financial journeys. As a San Diego financial planner, wife, mother, grandmother, best friend, money coach, and financial advisor, I wear many hats. And if there’s one piece of advice I wish I could give every San Diegan face-to-face, it’s this:

Start saving for retirement as early as you can.

Whether you’re in your twenties and just getting started, or in your forties and realizing it’s time to catch up, I want you to know this: it’s never too early—or too late—to begin planning for your future.

Let’s dive into why early retirement savings matter and what you can do right now to get on track.

Why Saving Early Makes All the Difference

One of the most powerful tools we have in financial planning is time. The earlier you begin saving, the more you can benefit from the magic of compound interest. That means your money earns interest, and then that interest earns interest—and it keeps growing.

Let’s Look at an Example

Imagine a 25-year-old San Diegan who saves $500 a month in a retirement account earning an average of 7% annually. By the time they reach 65, they could have over $1 million saved. Now compare that to someone who starts at 40 and saves the same amount—by 65, they’d have around $300,000.

That’s the power of starting early. It gives your money time to grow and can dramatically reduce the amount you need to save later in life.

Retirement Isn’t What It Used to Be

Retirement today looks a lot different than it did for our parents or grandparents. People are living longer, healthcare costs are rising, and many of us dream of more than just “getting by” in retirement—we want to travel, pursue passions, help our children and grandchildren, or simply live comfortably and independently.

Here in San Diego, the cost of living can make saving feel like a challenge. But that’s exactly why it’s so important to start early. The more time you give yourself, the more options you’ll have when that day comes.

But What If You’re Starting Later?

Let me be clear—there’s no shame in starting late. Life happens. We raise families, pay off student loans, buy homes, and sometimes put our own retirement on the back burner. I’ve worked with many clients in their 40s, 50s, and even 60s who are just beginning their retirement planning journey.

And you know what? That’s okay.

It just means we may need to be more strategic—maximizing contributions, catching up with savings tools, and making sure every dollar is working toward your long-term goals.

How Much Should You Be Saving?

The answer depends on a few personal factors—your lifestyle, goals, age, income, and current savings—but here are a few general guidelines I share with my clients:

In Your 20s and 30s:

• Save 10–15% of your income toward retirement.
• Prioritize building good habits: automatic contributions, budgeting, and living below your means.
• Take full advantage of employer-sponsored plans like 401(k)s—especially if there’s a company match.

In Your 40s and 50s:

• Ramp up savings to 15–20% if possible.
• Look into catch-up contributions (extra amounts you can contribute once you hit age 50).
• Start envisioning what retirement actually looks like for you. What do you want to do? Where do you want to live?

In Your 60s and Beyond:

• Fine-tune your retirement income plan.
• Consider Social Security strategies—timing matters.
• Work with an advisor to map out withdrawal strategies to minimize taxes and make your money last.

The San Diego Factor: Planning for Retirement in a High-Cost Area

Let’s be honest—San Diego is an amazing place to live, but it’s not cheap. Many of us here face higher housing, food, and healthcare costs compared to other parts of the country. That means your retirement plan needs to account for a higher cost of living and a longer life expectancy.

That’s why I emphasize customized planning. What works for someone in Arizona or Texas might not work here. We need to think about how your retirement savings will support your lifestyle right here in sunny Southern California—or wherever you choose to retire.

Don’t Rely Solely on Social Security

Social Security was never meant to be a retiree’s only source of income. For most people, it might cover only about 30–40% of your pre-retirement income. That’s why personal savings, retirement accounts, and other income sources (like real estate or a part-time business) are so important.

One of the things I help clients do is understand how to coordinate all of these income sources to build a sustainable retirement paycheck. It’s not just about saving—it’s about turning that savings into income that lasts.

Retirement Isn’t Just About Money—It’s About Freedom

To me, retirement isn’t just an age or a number in your bank account. It’s about freedom. It’s the freedom to choose how you spend your time, who you spend it with, and what you do with the rest of your life.

Maybe you want to travel the world. Maybe you want to volunteer, start a small business, or spoil your grandkids (I know I do!). Whatever your dream is, saving early is the best way to make it a reality.

What You Can Do Today

Here are a few small steps you can take right now to start moving toward the retirement you deserve:

1. Open a retirement account if you haven’t already—401(k), IRA, or Roth IRA.
2. Increase your contributions, even by just 1%. Every bit helps.
3. Set a retirement goal—how much do you want to live on per year? When do you want to retire?
4. Meet with a financial advisor who can help you build a personalized plan.

Even just getting clarity on your goals and where you stand today is a powerful step forward.

Let’s Plan Your Future—Together

If you’re reading this and thinking, “I should be doing more”—you’re not alone. I talk to people every day who feel overwhelmed, behind, or unsure of where to begin. But that’s exactly why I do what I do.

I believe that financial education and personalized coaching can change lives. It’s not just about numbers—it’s about creating a life you love and preparing for the future you want.

So whether you’re 25 or 65, just getting started or ready to fine-tune your plan, let’s have a conversation. I’d love to help you take that next step, wherever you are on your journey.