At what age should individuals ideally start saving for retirement?

Starting to save for retirement as early as possible, ideally in one's 20s, is crucial due to the power of compound interest. When individuals begin saving early, they can take advantage of time to allow their money to grow significantly. Compound interest means that not only does the initial investment earn interest, but the accumulated interest also earns interest over time. This can lead to exponential growth of retirement savings.

Moreover, saving in the 20s often comes with lower financial obligations compared to later years when individuals may have mortgages, children, or other expenses. This makes it a generally more feasible time to start setting aside money for long-term financial health. Additionally, beginning well before retirement provides a cushion against market fluctuations and unforeseen life events that can impact savings.

By starting early, individuals can establish healthy financial habits and increase their saving rates gradually, which can add to their retirement fund when they are later able to contribute more as their careers and incomes grow.