Start Saving as Early as Possible

By Alaina Tweddale  |  WiseBread  |  June 19, 2014

The data below is an excerpt from This Is Why You Can't Postpone Planning for Your Retirement (And How to Start)
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Treat your retirement savings like you would any other bill: Budget for it and put the dough away each month, as if it were a necessary expense (because really, it is). The earlier you start, the more you can take advantage of compound earnings and, ultimately, the less you'll have to sock away in the long run. Here's a look at what you'd need to save, starting at different ages, to retire with $2 million (assuming an average annual increase of 7% per year and retirement at age 65).

• Start at age 20 and you'll have to save $510 per month.
• Start at age 30 and you'll have to save $1,050 per month.
• Start at age 40 and you'll have to save $2,270 per month.
• Start at age 50 and you'll have to save $5,600 per month.

The saver who started at 20 saved only $245,000 (the rest of the balance is a result of compound investment earnings). The saver who starts at age 50, on the other hand, will save $1,008,000 to get to $2 million at retirement.