During your 20s, saving for your retirement is not even a far sighted goal. It is nowhere even close to being your concern or priority. Your age is a major reason for you to think it is not necessary. However, I believe this age should be the main reason for you to start saving. Sooner you start the better it is for you. As you get closer to retirement, it gets difficult to save because of your never ending range of expenses and increased responsibilities. Even a little portion of your early savings matter in the long run. You must be thinking “why start now?”

1. Saving little now can benefit in long run

Let us a take a figure of $50,000 as your goal for your retirement fund. Let us say you are now 25 years old and may be will retire at the age of 50. That means you have 25 years to reach your target. If you start saving now every month, you get 300 months (25X12) which means all you need to take out every month is $167 (50000/300) which obviously is not bad at all keeping in mind you do not have a lot of expenses and responsibilities. Say you start saving at the age of 40 when you think the clock is ticking faster to towards retirement. You now have 120 months which implies a monthly saving at the rate of $417 which is almost 3 times than the other option. You need to take a call what works best for you.

2.Tax savings

Saving right from the beginning will definitely help in reduction of taxable income and hence you pay less taxes and plus secure your future.

3. Face unexpected financial downturns

Future is unforeseen. One should be financially prepared to face any financial turmoil in life. The sooner you start saving, the flexible you are to face such challenges. Recovery from such circumstances makes it easier for you if you started saving at the right age.

4. More time implies more money

If we go back to point 1 where you have save $50000 by the age of 50. When you are closer to 50, you might still not wish to retire. That means you have more time to save which definitely means more money in your hands for your retirement. Also, keep in mind with more time the value of the amount invested also appreciates.

The bottom line is regular savings makes one feel confident that you and your life is right on track. It will help you live your present and future life the way you want it to be. You and your family will be ready to deal with challenges with a smile. Early investment is the best thing you could do for yourself and your family’s smooth lifestyle.