Behind the Curve: How Attorneys Can Catch Up on Retirement After a Late Start
For most attorneys, the path to their career started later than it did for peers in other professions. With three years of law school (often more if combined with other graduate programs) and the grind of student loan repayment, many attorneys don’t begin meaningful retirement savings until their mid-30s — or later.
Meanwhile, their peers who entered the workforce in their early 20s have already logged a decade of compounding growth and employer 401(k) matches.
This late start in retirement planning is one of the most overlooked financial planning challenges for attorneys — and it comes at a cost. But with targeted strategy and the right tools, it’s possible not only to catch up, but to build long-term wealth that meets your retirement goals.
The Compounding Disadvantage
Let’s say a law school graduate begins saving for retirement at age 35, while their friend in finance started at 25. Even if they save twice as much per year, the attorney may still fall behind — not because of income, but because of time. Compound interest favors the early saver.
Every decade you delay saving:
You need to contribute 2–3x more annually to reach the same end goal
You lose out on years of market growth and tax-deferred compounding
You increase the risk of needing to work longer or retire with less
This "compound interest penalty" is the silent cost of professional delay.
Why Attorneys Delay Retirement Planning
Beyond education and late workforce entry, several other factors delay savings for attorneys:
High student loan payments (especially under federal or income-driven plans)
Front-loaded lifestyle inflation (homes, cars, travel)
Focus on debt reduction over wealth building
Assumption that high income later will compensate for early inaction
While understandable, these tendencies can significantly reduce future financial flexibility — especially if attorneys want the option to retire early, change careers, or reduce hours later in life.
How to Catch Up: Strategic Planning Solutions
The good news? Attorneys are often in a strong position to catch up — if they act with intention. Here’s how:
1. Maximize Tax-Advantaged Contributions — Aggressively
Don’t just “contribute” to your 401(k). Max it out, and if possible:
Use both traditional and Roth options (if available)
Contribute to a Backdoor Roth IRA if income exceeds limits
For solos or partners, use a Solo 401(k) or Cash Balance Plan to turbocharge savings
Maxing out a 401(k) ($23,000 in 2025, plus $7,500 catch-up for 50+) adds up quickly — especially when paired with employer contributions or profit sharing.
2. Supercharge Savings with a “Retirement Gap Fund”
In addition to retirement accounts, build a taxable brokerage account specifically for retirement gap funding. This can:
Supplement early retirement withdrawals without penalty
Provide more flexible access than traditional retirement plans
Allow strategic tax-loss harvesting
Think of this as your "early retirement bridge" between your last paycheck and when you can tap 401(k)/IRA funds penalty-free.
3. Balance Student Loan Payments and Retirement
Many attorneys over-prioritize aggressive student loan payoff at the expense of investing. That’s not always optimal.
Instead, consider:
Slowing down loan payments if interest rates are low (especially federal)
Using income-driven repayment for cash flow flexibility
Coordinating with Public Service Loan Forgiveness (PSLF), if eligible
A CFP® professional can help evaluate whether your money works harder in the market or against loans — often, it's a blend.
4. Automate and Increase Savings Over Time
You might not be able to save 20% of your income today — but you can grow into it. Use an automated step-up strategy:
Increase contributions by 1–2% annually
Direct raises and bonuses into investment accounts
Reinvest tax refunds and equity distributions
Automating these changes removes emotion and builds momentum.
5. Protect What You’re Building
Don’t let progress get derailed. As you catch up on savings, make sure you:
Maintain strong disability and umbrella insurance
Use estate planning tools (wills, trusts, powers of attorney)
Evaluate your risk tolerance and investment allocation regularly
Late starters can’t afford avoidable setbacks — protecting wealth is as important as growing it.
Avoiding the Comparison Trap
It’s tempting to compare your retirement savings to non-lawyers who started earlier — but remember: your high income gives you tools others don’t have.
What matters isn’t when you start — it’s what you do now. Attorneys have the unique ability to catch up rapidly with disciplined strategy, intentional planning, and compound interest working in their favor.
When to Work with a CFP® Professional
A financial planner who understands the legal profession can help you:
Create a personalized retirement catch-up roadmap
Balance loans, investments, and lifestyle goals
Model different retirement ages and income needs
Avoid costly tax and withdrawal mistakes later on
Whether you're 35 or 50, a CFP® can help you make up for lost time — and even surpass your original goals.
Final Thoughts: It’s Not Too Late
If you're an attorney who feels behind on retirement, you’re not alone — and you're not out of options. Your career path may have started later, but with smart planning, it can still end on your terms.
Whether your goal is financial independence, early retirement, or just peace of mind, the best time to start catching up is now.