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Citibank executive urges earlier retirement saving to use compounding

The Citigold North America head said each year delay leaves one less year for retirement money to grow, as Americans increasingly expect to fund decades of expenses.

Citibank executive David Poole, head of Citigold North America, said the biggest retirement mistake he sees is delaying retirement savings, arguing that every year postponed means one less year for money to grow.

Poole told MarketWatch that longer retirements are making saving decisions more urgent, noting that Americans are living longer and that retirement savings may need to cover decades of living expenses, healthcare costs, and the lifestyle people have planned for.

He cited U.S. retirement timing benchmarks, with the average retirement age around 64 for men and 62 for women, including those who retire earlier, and described concerns about clients being prepared for retirement that could last 30 years or more.

The article also points to Northwestern Mutual research showing Americans believe they will need about $1.46 million to retire comfortably, an estimate up more than 15% year over year, while nearly half of respondents said they believe it is somewhat or very likely they will outlive their savings and many have not taken steps toward preparation.

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