When should you begin planning for retirement? Young workers are interested in jump starting their careers and retirement seems so far in the distant future. However, the smart young workers will start planning and saving for retirement as soon as they begin their careers. With the process of compounding interest over the years, starting to save in your 20s will pay off later when you face retirement. If you are in your middle age and haven’t started saving it takes much more in investments because of the shorter period of time until retirement and most often cannot be made up.

At current retirement savings speed, it is estimated that 55 percent of adults are at risk of not covering essential expenses in retirement, reports Fidelity Investments assessment of 4,650 U.S. adults. So the answer as to when to begin savings is the first day of your first job, regardless of your age. Enroll in plans offered by your employer and contribute the maximum amount for the best return.

Pension plans have gone by the wayside at most large companies due to the cost of offering and maintaining a defined benefit plan. Years ago pension plans were common but most are now frozen, terminated or paid out. One of the most popular plans offered by companies today are defined contribution plans like 401k plans. You may think you can’t afford to participate, but the fact is that you can’t afford to not participate. You cannot count on Social Security to continue your standard of living following retirement. Social Security benefits will not be enough alone to cover your living expenses. The goal of employees to be able to continue their standard of living at the same level as during their working years is a lofty one but attainable with proper planning, saving early and good investments.

Just as employees need to prepare for retirement so do employers. The loss of key employees is a very important consideration for your business in long term strategic plans. USA Today recently reported on surveys conducted by Robert Half of over 2,100 executives on the greatest potential losses to a company from older workers retiring. Retirement losses were reported in the survey as follows.

• Leadership — 39 percent

• Legacy knowledge — 23 percent

• Functional skills —15 percent

• Soft skills — 15 percent

• Contacts outside the organization — 5 percent

Some businesses fail to recognize such potential losses and are woefully unprepared when faced with replacement of retiring workers. Some skills are difficult to replace and new hires are often hard to find with the necessary skills and knowledge.

When the time comes to consider making the life changing decision to retire many employees are working longer than in previous years. As many as 90 percent of all retirees in the US suffer financially in retirement. Good planning will keep you from being one of these. So it is crucial to consider all the aspects of your life and the changes you will face in retirement. The reasons workers are delaying retirement vary from the need for income, social interaction, fulfillment in the job and simply because the person enjoys working and contributing. The adjustments in retirement are financial, emotional, social and physical. Planning on how to cope with the changes in your life is important to result in a happy and successful transition to retirement.

Becky Vaughn-Furlow retired from Trustmark Bank as executive vice president and human resources director. She can be contacted by emailing bvaughnfurlow@gmail.com.