Saving for retirement is one of those topics that can often be overlooked, especially by young people just starting their careers. But the truth is, when it comes to building a secure financial future, the earlier you start, the better.

We all have different ideas about what retirement looks like. For some, it might mean traveling the world and checking off bucket-list items. For others, it could be about finally having the time to pursue passions and hobbies or simply spending more time with family. No matter what your retirement dreams may be, making them a reality requires careful planning and saving.

The power of compound interest means that even small amounts saved today can grow into substantial sums over time. This means that the sooner you begin saving and investing, the more time your money has to grow and benefit from compound interest. Waiting even a few years can significantly impact the amount you’ll have saved by retirement age. For example, let’s say you start saving $200 a month at a 7% annual return when you’re 25 years old. By the time you retire at 65, you’ll have saved $415,000. However, if you wait until you’re 35 to start saving the same amount, you’ll only have about half that amount by retirement age, assuming the same rate of return.

Of course, retirement savings vehicles like 401(k)s and IRAs offer tax advantages to encourage people to save for the long term. Contributing to these accounts can lower your taxable income and, in the case of some employer-sponsored plans, may even come with matching contributions, essentially giving you free money toward your retirement. It’s important to understand the different options available and how they can benefit your financial future.

Another benefit of starting early is that it allows you to take on a bit more risk in your investment choices. When you’re investing for the long term, you can ride out the ups and downs of the market and potentially see greater returns by investing in growth-oriented assets. While it’s important to have a diversified portfolio at any age, those with a longer time horizon can allocate a larger portion of their assets to stocks and other higher-risk, higher-reward investments.

Retirement planning is not just about saving; it’s also about ensuring you have the financial security to maintain your desired standard of living when you’re no longer earning a steady income. This includes considering factors such as inflation, healthcare costs, and potential long-term care needs. By starting early and seeking professional guidance, you can develop a comprehensive plan that addresses these concerns and ensures you’re on track to achieve your retirement goals.

So, whether you’re in your 20s, 30s, or beyond, remember that it’s never too early (or too late) to start planning for retirement. The first step is often the hardest, but by prioritizing your financial future and taking advantage of compound interest, tax benefits, and strategic investment choices, you can set yourself up for a comfortable and fulfilling retirement. It’s your future, so start planning for it today!

Let this article inspire you to take control of your financial future and seek guidance from financial advisors to ensure a comfortable retirement.