Postponing saving for retirement by five to 10 years could reduce retirement income by nearly a quarter, according to a new study.

A worker contributing 10 percent of his income annually to a retirement plan beginning at age 35—rather than age 30—will receive 11 percent less in annual retirement income ..

…If saving for retirement is postponed to age 40, income will be reduced by 23 percent, totaling $127,000 over a 25-year retirement…


Here’s the problem, compound interest is time dependent.  You can’t go back in time and begin saving ten years ago and time is your most valuable resource in building wealth.

A worker starting to save at age 40 would need to put aside more than 26 percent of income annually to achieve the same level of retirement income at age 65 as the person who started saving 10 percent at age 30.

That’s a huge penalty to pay for procrastination.  Start now!