many white piggy banks surrounding a large calculator For college-educated workers, earnings at age 25 are typically only 42% of their peak earnings, and in this case, “saving for retirement when income is temporarily low could be suboptimal.” (Photo: Shutterstock)

Conventional wisdom has always said that young people should start saving for retirement early in their careers. That may be the wrong approach for some workers, according to a new report from the National Bureau of Economic Research.

Researchers suggest that because life is uncertain, sacrificing now for a presumed better life decades in the future may not always be the best strategy. The report uses a lifecycle model based on a millennial born in 1995 who begins work at age 25 and retires at age 67. It assumes a 27% in federal and state tax rate, 2% inflation and standard Social Security benefits. It also looks at the effects of an employer 401(k) match of 50% on up to 6% of wages.

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