Early Bird Gets the Retirement Savings

Daily Stat | October 25, 2012 | Topics: Retirement 

$1 Million: Amount that can be accumulated by age 62 by saving $4,000 per year at 8%

Starting a first job means a litany of expenses—rent, utilities, food, car payments, and the list goes on. Retirement is probably far from top of mind. But saving early can lead to financial independence and flexibility much earlier in life. Given an 8% average annual return, a worker saving $4,000 a year starting at age 22 would accumulate $1 million by age 62. However, if that same worker waits until age 32 to start saving, he or she will have to save over $8,800 per year to reach the same goal. Haven't started your savings yet? It's never too late. This National Save for Retirement Week take the time to establish a savings plan and vow to stick with it.

Source: BlackRock; MSN Money, "Your 20s: Planning pays off richly," October 24, 2011

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