You need to understand the chat below if you want to have a lot of money at retirement.
Young people starting to work can reasonably expect no pension for them come retirement since we live in the age of individual retirement account that gives us more control over our financial future.
Compound interest can be a young person's best friend provided they start saving early. Saving early is the best thing a person can do for their retirement account.
Compound interest is just easy mathematics. When you start saving, that money earns interest. As the interest grows, your money basket grows bigger as well and accrue even more interest. Over the years, that little interest at the beginning makes a very big difference.
You can see in the chart below that saving a little bit of money annually from the age of 25-35 generates a lot of money at 65 than if a person had started saving even with a lot of money at 35.
The longer you wait to start saving for retirement the more you miss out on the benefits of the amazing power of compound interest.
