I posted this in August 2015, but feel so passionately about it that the information will get reposted 1-2 times every year. Please share with friends, colleagues, and employees. – Jill Randall, Blog Director

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Saving for retirement is a grey area for many dancers. While holding down multiple freelance gigs, dancers usually do not have one main employer and the opportunity for a formal 401(K) program. But, that does not mean that dancers should not take this on on their own. Whether you are 22, 30, or 40, it's never too late or too early to begin saving. Many artists who have been profiled on the blog over the past 3 years have suggested to begin saving early.

I asked my financially savvy spouse to help with today's post. You can go to your bank to set up some form of a retirement plan, such as an IRA, or even online through Schwab or Vanguard.

The following link from CNN Money also offers some basic information and a retirement calculator. The information is sobering; definitely consider talking this through in person with a family member, friend who works in finance, or someone at your bank. Click here. (Just a reminder….during retirement you will collect social security as well as use the money in your retirement savings.) Forbes.com also published an accessible article on this topic as well.

The key is the compounding of the money. The longer the money is in the bank, the better the benefit.

Personally, I probably started my IRA in my early 30s. It was not until age 34 that I was in a job that offered a 401(K) program (plus a match). And a word about matches from your employer – if your employer does match some of the money you place into your 401(K), I highly suggest maximizing this benefit. For example, an employer might offer to match up to 5% of your annual salary. It is a gift to you (free money) – potentially several thousand dollars a year on top of your salary.

Ultimately, you need to decide how much you can comfortably tuck away each month. Even beginning with $25 or $50 a month clearly benefits you. For many dancers, the thought of putting away 10% of your income each month might not be possible while in your 20s.

Here is an example. If a dancer puts aside $50 a month from age 25 until age 65, that money compounds to be $119,781 (with a 7% average annual return). Starting early clearly will have its benefits. Compare this to starting at age 35 (ending at 65 with $56,676) and starting at age 45 (ending with $24,597). You will want to save more than $50 a month when you can, and reach that ideal number of saving 10% of your annual income each year, but you get the idea. Starting early is important.

Please share this post widely with friends and colleagues. As a dance community, let's keep having honest conversations about dance careers and our years ahead. If you have insights to add to this conversation, and related articles, please leave a comment below.

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