Starting retirement contributions at 25 instead of 35 yields $2M
A 10-year delay in retirement savings can result in a $1.1 million shortfall. Starting retirement contributions at age 25 instead of 35 can turn a $225,000 lifetime contribution into over $2 million by age 65.
The SPDR S&P 500 ETF has returned roughly 259% over the past ten years, supporting an 8% long-run assumption for retirement savings projections.
A 20-year-old needs just $95 monthly to retire a millionaire, while a 40-year-old needs $1,052 monthly for the same goal, due to lost compounding years.