Everyone is told to save for retirement early. Everyone is told to save consistently. You may wonder: just what kind of difference might an early start and ongoing account contributions make?

We’ll share some eye-opening numbers to show you (and you can verify them simply by using the compound interest calculator at investor.gov, the Securities and Exchange Commission’s website).


If you are 30 years old and contribute $200 a month to a tax-deferred retirement account (initial investment of $200, then $200 per month thereafter), you will have $333,903.82 by age 65, if that account consistently returns 7% a year. (This is with annual compounding.)

If you change one variable in the above scenario – you start saving and investing at 25 years old instead of 30 – you will have $482,119.16 by age 65.

Start at 20 years old and you will have $689,998.84 by age 65.


An early start really matters. It gives you a few more years of compounding – and the larger the account balance, the greater difference compounding makes.

These are simple scenarios, but the impact of consistent saving and investing is undeniable. Over time, it may help you build a retirement account that could become a significant part of your retirement savings.


Are you saving enough? Be sure to find out. Contact us at Symphony Financial to schedule a chat where we can take a look at the progress you have made, and whether your current efforts will have the potential to help you realize your goals.