When is it advisable for individuals to start saving for retirement?

Starting to save for retirement as early as possible, ideally in one's twenties, is advantageous for several reasons. One of the most compelling factors is the power of compound interest. When individuals begin saving early, even small amounts can grow significantly over time due to interest being calculated on both the initial principal and the accumulated interest earned in previous periods. This compounding effect means that the earlier savings commence, the more substantial the retirement fund can become.

Additionally, starting early allows individuals to take advantage of more aggressive investment strategies that might carry higher risks but also offer higher potential returns. Young savers have the luxury of time on their side to recover from any market downturns, making it feasible to invest in a diversified portfolio.

Moreover, beginning retirement savings in one’s twenties can help establish a habit of saving and financial discipline, leading to better management of personal finances throughout life. It also allows individuals to spread out their contributions, making retirement savings more manageable alongside other life expenses such as education, housing, and family planning.

In contrast, delaying retirement savings—such as starting in one's forties, waiting until after significant expenses are covered, or leaving it until five years before retirement—compromises the advantages of compounding growth and can result in a lower retirement income