For people in their twenties and thirties, retirement feels a long way off. There are 30 – 40 more years of work between now and that big day.
If you are wondering when might be the best time to start saving for retirement then the answer is: you should start saving for your retirement NOW.
Time is your friend
When it comes to saving and investment, it is less about how much you have and more about how long. Small sums of money can grow into much larger ones with enough time.
This is all thanks to compound interest. Compound interest means that you earn interest on any money you make from interest payments. Therefore, over time this grows at a fantastic rate. But to truly benefit you need to give it as much time as possible.
Someone who starts investing for their retirement in their twenties will have 20 years more to grow their investments compared to someone who starts in their forties.
Even saving the same amount each month but starting 20 years apart could lead to a difference of hundreds of thousands or even millions.
Fewer commitments, more money
Typically, our younger years are when we have least commitments such as families and homeownership. Making it the perfect time to invest.
That way, if you need to take a break from saving and investing, you will already have a big lump sum that is still earning interest.
When is the best time to start saving for retirement?
When it comes to saving for retirement starting now is better than starting tomorrow. Time truly is money in this instance, so it is important to start as soon as you can.
Check out this calculator to work out how much money you would need to save to meet your retirement goal. You may be surprised at the results. Coming Soon
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