You’re knee-deep in your trade, hustling hard, getting your hands dirty while getting that sweet, sweet paycheck. Whether you’re wiring up an entire building as an electrician, laying pipes as a plumber, or putting together HVAC systems, you’ve gone through the processes to get you to the career that you’re in today. Congrats! You’ve got a good thing going. But here’s my question: Have you started saving for your retirement yet? 

Yeah, I know—sorry for springing the big “R” on you out of nowhere. But if you’re like most built environment professionals (or let's face it, anyone in the workforce today) you’re probably already aware of how tough it is to retire in today’s world. So how much do you really need to put aside in order to retire comfortably at 60, 65, or even 70? Let’s get into it. 

How Long Does It Take to Start Making Good Money? 

Whether you're just starting out or have been in the game for years, the timeline of earning potential is different for every profession in the built environment. One thing that’s true across the board though, is that the earlier you start, the better. Here’s a quick breakdown of how long it typically takes to start earning solid wages: 

• Electricians: Becoming a journeyman electrician usually takes 4 to 5 years of training, including apprenticeships. Once you’re fully trained and licensed, you can start earning upwards of $50,000 per year, with seasoned electricians making $70,000 or more in many areas. 
• Plumbers: Like electricians, plumbers often need to complete an apprenticeship, which takes about 4 to 5 years. Once you’re certified, expect to make around $50,000 to $60,000 a year, with more experienced plumbers pulling in $70,000 to $80,000 annually.
• HVAC Technicians: The training process for HVAC professionals typically takes about 2 years, either through vocational programs or apprenticeships. After you’re fully licensed, you can expect to start around $40,000 to $50,000 per year. As you gain experience, you can make $60,000 or more.
• Construction Workers: Entry-level construction workers or laborers usually start around $30,000 to $40,000, but general contractors or project managers with more experience can easily make $70,000 to $90,000 or more per year, depending on the size of the projects they’re managing.
• Contractors: If you run your own business as a contractor, your salary can vary significantly depending on the size of the projects you take on, the number of clients, and how well you manage your business. Successful contractors often make six figures or more. 

The Importance of Starting Early

It’s never too early to start planning for your future, and while it’s easy to get caught up in the day-to-day grind of your work, retirement creeps up faster than you might think. Let’s break it down by the age at which you hope to retire to give you a good projection of just how much you’re gonna wanna save.

Retiring at 60:

Like a lot of folks, 60 once seemed like a sweet spot for retirement, but it can be a challenge to get there nowadays.. If you're aiming to retire at 60, you're looking at needing enough money to live comfortably for 30 years or more after you retire. The earlier you start saving, the more time your money has to grow with compound interest.

Let’s say you want to have $1,000,000 saved up by the time you hit 60. Here’s what that looks like according to Fidelity Investments if you’re starting at age 25:

• Electricians: If you saved 15% of your $55,000 salary per year (roughly $8,250), you would need to keep that up for 35 years to reach $1,000,000 (assuming an average 7% return on investments).
• Plumbers: With a starting salary of $55,000, saving 15% per year would get you $8,250 a year saved. You’d need to do that for 35 years, just like the electricians.
• HVAC Technicians: Let’s say you start at $45,000 per year and save 15%. That’s around $6,750 annually. For 35 years, you could make it to $1,000,000 by the time you're 60.
• Construction Workers/Contractors: If you start as a laborer and make $40,000 per year, saving 15% (or $6,000 annually), you’re looking at 35 years of savings to reach the same million-dollar goal. 

Retiring at 65: 

If you plan on working until 65, you have an extra 5 years of earning and saving, which can help cushion the blow of retirement. That extra time can also make a big difference in how much you need to save each year.

• Electrician: Saving for 40 years instead of 35 means you can save less per year. If you started at 25 and made $55,000 annually, you’d need to save about $6,250 per year for 40 years to reach $1,000,000.
• Plumbers: With a $55,000 salary and a 15% savings rate, that’s about $6,250 annually saved. Over 40 years, you’d hit the million-dollar mark by 65.
• HVAC Technicians: Starting at $45,000, saving 15% would get you $6,750 per year saved. With 40 years to work with, you’re in a similar situation to the plumbers and electricians.
• Construction Workers/Contractors: If you’re making $40,000 per year and saving 15%, you’d need to put away $6,000 annually to hit $1,000,000 by 65. That extra 5 years gives you a little more breathing room.

Retiring at 70:

The longer you wait to retire, the more you can accumulate without needing to save as much. However, it’s still important to start saving early so your money grows over time.

• Electricians: By 70, you’d have 45 years to save. If you start at $55,000, saving 15%, you’d need to put aside around $5,000 per year.
• Plumbers: Plumbers are in the same boat. Save about $5,000 annually, and you're golden.
• HVAC Technicians: Same story, save about $5,000 per year for 45 years, and you’ll be set.
• Construction Workers/Contractors: If you’re saving 15% of $40,000 annually, that’s about $6,000 per year, but you have the advantage of a longer savings period.

How Can You Make This Happen? 

Start Early: The earlier you start, the easier it is to hit your goals. Even if you can only save a little bit at first, make it a habit. Aim for 15% of your income, but if that’s too much, start with 5% and increase it as you can.

Use Retirement Accounts: Take advantage of tax-advantaged retirement accounts like IRAs and 401(k)s. If your employer offers a 401(k) match, make sure you’re contributing enough to get that free money!

Automate Your Savings: Set up automatic transfers to your retirement accounts so you’re not tempted to spend the money you should be saving.

Invest Wisely: While you’re working hard to save, you also want to make sure your money is working for you. That means investing in a diversified portfolio of stocks, bonds, and possibly real estate.

Increase Savings with Salary Growth: As your salary increases over the years, make sure your savings increase too. If you get a raise or take on more responsibilities, try to put some of that extra money into your retirement fund.

Final Thoughts

Starting your retirement savings early can make all the difference when it comes to living comfortably in your later years. Professions in the built environment may not come with the immediate financial perks of some office jobs, but with the right strategy, you can retire on your own terms. It’s never too early to start—your future self will thank you.