Catching Up on Retirement: Smart Strategies for Attorneys Who Started Late
Unlike many professions, attorneys often don’t start earning significant income until their late 20s or early 30s — after years of law school, bar exams, and clerkships. By the time you’re established, you may be juggling student loans, firm buy-ins, and family expenses.
It’s no surprise that many attorneys find themselves in their 40s or even 50s realizing they haven’t saved enough for retirement. But while the late start is real, the good news is that attorneys have tools — high income potential, tax-advantaged accounts, and disciplined planning — to catch up.
1. The Cost of Delayed Savings
The first step is facing the math: delaying retirement savings even 10 years can cut your future nest egg in half due to lost compounding. For example:
Saving $1,500/month from age 30 to 65 at a 6% return = ~$1.5 million.
Waiting until age 40 to start = ~$775,000.
That gap can be intimidating, but attorneys often have more flexibility to accelerate contributions than other professionals.
2. Maximize Catch-Up Contributions
Once you turn 50, the IRS allows additional “catch-up” contributions:
401(k) / 403(b): $22,500 standard limit + $7,500 catch-up (2023 limits).
IRA / Roth IRA: $6,500 standard limit + $1,000 catch-up.
For partners or solos, SEP IRAs and Solo 401(k)s allow even higher contributions, often exceeding $60,000 per year.
3. Use Bonuses and Windfalls Wisely
Attorneys often receive year-end bonuses, case settlements, or deal-based payouts. Allocating these directly into retirement or investment accounts — instead of lifestyle upgrades — can rapidly close the gap.
4. Prioritize Tax-Efficient Saving
With high incomes, attorneys benefit greatly from tax planning:
Traditional 401(k)/IRA Contributions reduce taxable income today.
Backdoor Roth IRA Strategies allow high earners to still benefit from Roth accounts.
Defined Benefit Plans are especially powerful for partners with high, stable income — allowing six-figure annual contributions that double as tax deductions.
5. Balance Debt vs. Retirement
A common question: should attorneys pay off student loans or save for retirement first?
The answer often lies in the interest rate vs. investment return trade-off. If loans are at 3–5% and your retirement investments can reasonably earn 6–7% over decades, prioritizing retirement savings often makes sense — especially if you’re already behind.
6. Rethinking Lifestyle Inflation
Many attorneys fall into the “golden handcuffs” of expensive homes, luxury cars, and private schools. These choices can crowd out retirement savings.
Key mindset shift: Your future self is your most important client. Redirecting even 15–20% of current income toward retirement can make a massive difference, even if it means moderating lifestyle expectations now.
7. Consider Extending (and Redefining) Your Career
For some attorneys, the reality may be that full retirement at 65 isn’t feasible. But law offers unique flexibility:
Transitioning to “of counsel” roles with lighter caseloads.
Teaching, mediation, or consulting in later years.
Shifting from high-intensity practice areas into steadier niches.
This extended income runway can reduce the pressure on your retirement accounts while still providing professional fulfillment.
Case Study: The Partner Who Started at 45
At age 45, a newly minted partner realizes she has only $150,000 saved. By maxing out 401(k) contributions, funding a defined benefit plan, and dedicating annual bonuses to savings, she increases contributions to $120,000 per year. By age 65, even with a late start, she builds a portfolio exceeding $2 million — proving it’s never too late to catch up.
Final Thoughts
It’s common for attorneys to feel behind on retirement — but it’s not a lost cause. By leveraging catch-up contributions, making intentional choices about windfalls, and resisting lifestyle creep, you can accelerate savings and still build the retirement you envision.
The key is to start now. As with any case you’ve ever argued, preparation and strategy make all the difference in the outcome.