Measure for measure: Don’t expect a secure retirement if you don’t save

As originally appeared in The Jerusalem Post on January 30, 2025.

I’ve been learning the Talmudic Tractate of Sota, in order to finish it for the first anniversary of my father’s passing.

In this week’s Tora portion of Bo, we finish up the story of the 10 plagues. According to the Midrash one of the principles that we learn from the plagues is “middah k’negged middah” (measure for measure), where the punishment reflects the crime. This principle is evident in the first plague and continues to the Egyptians’ ultimate demise at the splitting of the sea—in what can be called the final plague.

Why are the Egyptians drowned? It is the just punishment for drowning Israelite infants in the Nile. The Talmud (Sotah 11a) connects this to Yitro’s declaration in Exodus 18: “Now I know that Hashem is greater than all the gods, for the very matter in which they schemed was turned against them.”

In discussing the process leading up to drinking of the bitter water of the Sota ( a woman suspected of adultery), the Talmud says, “And we found this with regard to a Sota, that with the measure with which she measured, she is measured with it: She stood by the opening of her house to exhibit herself to her paramour, therefore a priest has her stand at the Gate of Nicanor and exhibits her disgrace to all; she spread beautiful shawls on her head for her paramour, therefore a priest removes her kerchief from her head and places it under her feet etc…”

There is then a whole list of people punished measure for measure for bad things they did. The Talmud then also emphasizes that just as punishments are delivered measure for measure, so too are rewards—on an even greater scale. Miriam, for instance, waited briefly by the water to ensure her brother’s safety, intervening to have him nursed by his mother before he was taken to the palace. In return, the entire Jewish people waited a full week for Miriam when she was afflicted with tzara’at after speaking ill of Moshe.

Forgive me for the segue but the same thing applies to retirement planning. Recently I spoke with a lady who a few years ago received a large inheritance. We had spoke about saving the majority of the money because she didn’t have much in terms of a pension. She ended up blowing through the money traveling, helping her kids buy apartments…etc. Recently she again inherited a fair amount of money from a cousin she was close to that had no children. She is now in her mid 60’s about to retire and totally panicked that she will run out of money. The money she inherited probably isn’t enough to generate the kind of money she will need to supplement her small pension and Bituach Leumi.

I know that I sound like a broken record, but retirement is one of life’s most significant milestones, and how financially comfortable you are during those years depends largely on what you do today. The simple truth is: what you put into retirement savings is what you get out. If you don’t save, you shouldn’t expect a secure retirement. Many people mistakenly assume that they can rely solely on Social Security, Bituach Leumi, pensions, or family support, but these are often not enough to maintain a comfortable lifestyle. Proper planning and disciplined saving are essential for financial security in your later years.

One of the most common mistakes people make is putting off saving for retirement. Whether due to financial constraints, lack of awareness, or the belief that there’s plenty of time, delaying retirement savings can have serious consequences. The longer you wait, the more you will need to save each month to catch up, if that’s even possible, and the harder it becomes to accumulate enough wealth to retire comfortably.

For those young readers check this out. One of the biggest advantages of starting to save early for retirement is the power of compound interest. Over time, your earnings start generating their own earnings, compounding into a much larger sum than what you initially invested.

For example, if you start saving $500 a month at age 25 and continue until you retire at 65, assuming an average annual return of 7%, you could accumulate over $1.2 million. However, if you wait until 35 to start saving the same amount, your retirement savings could be significantly lower, around $600,000. The earlier you start, the more time your money has to grow, making saving for retirement a much easier and more rewarding process.

If you haven’t started saving yet, the best time to begin is now. Even small contributions add up over time and are better than doing nothing at all. The key is to develop a consistent savings habit and gradually increase your contributions as your income grows.

The bottom line is simple: if you don’t save for retirement, you can’t expect a secure future. What you put into retirement savings today determines what you will get out when you retire. By starting early, taking advantage of compound interest, leveraging employer benefits, and creating a solid savings strategy, you can build the financial security needed for a comfortable and worry-free retirement. Your future self will thank you for the steps you take today.

The information contained in this article reflects the opinion of the author and not necessarily the opinion of Portfolio Resources Group, Inc. or its affiliates.

Aaron Katsman is the author of Retirement GPS: How to Navigate Your Way to A Secure Financial Future with Global Investing (McGraw-Hill), and is a licensed financial professional both in the United States and Israel, and helps people who open investment accounts in the United States. Securities are offered through Portfolio Resources Group, Inc. (www.prginc.net). Member FINRA, SIPC, MSRB, SIFMA, FSI. For more information, call (02) 624-0995 visit www.aaronkatsman.com or email aaron@lighthousecapital.co.il.