The Shocking Comparison
If you start saving for retirement at 30 instead of 40, your final nest egg could be 2–3 times larger. With 2,000/month and 8% annual return:
| Start Age | Final Value at 60 |
|---|---|
| 25 | ~4,690,000 |
| 30 | ~3,000,000 |
| 35 | ~1,880,000 |
| 40 | ~1,140,000 |
| 45 | ~680,000 |
The Critical Insight
Compare starting at 30 vs. 40: You invest 240,000 more (720K vs 480K), but you gain nearly 1,860,000 more in final value. Delay 10 years = lose nearly 2 million.
To catch up starting at 40, you would need to invest over 5,300/month — 165% more.
Action Plan by Age
- 20–30: Start today, even with 500/month. Time is your superpower.
- 30–40: Raise savings rate to 20% of income.
- 40–50: Review progress. Save more aggressively if behind.
- 50–60: Shift to lower-risk investments. Protect what you've built.
The best time to plant a tree was 10 years ago. The second-best time is now.