However, the earlier you start, the easier it will be to prepare for your retirement years. Every ten years you wait, may mean paying up to double to get the same pension income.
Let’s take a look at how delaying saving for your retirement may impact you:
- Karen and Tim would like to retire when they are aged 65
- Karen starts to save £200 p/month when she’s 30
- Tim delays saving until he is 45, meaning he will have to contribute twice as much p/month to help catch up
Not only will it be easier to save for retirement, but you can also benefit from compound growth, which simply describes the process of earning returns on your returns.