“Start early and make saving a habit.” Thanks to compound interest – earning interest on interest – the work of saving for retirement is easier the sooner you start. Smaller contributions to your employer-sponsored plan made over decades may net you more than larger contributions made over just a few years. Plus, long-term savers have the opportunity to ride out the ups and downs of the market. So, best get started saving sooner rather than later. Here’s what I’m talking about:

Why Larry ends up with less when he contributed more

Larry: Procrastinator Starts saving at age... 45 Monthly Contributions... $300 Total contributions at age 65... $72,000	Susan: Planner Starts saving at age... 25 Monthly Contributions... $100 Total contributions at age 65... $48,000

Source: Interest.com, Compounding Monthly Contributions Calculator

So, even if you’ve saved in the past but aren’t participating now, it’s time to get back in. Keep chipping in now and you may well have a sweeter pot later on.

The example is for hypothetical purposes only and is not intended to represent the returns of any specific investment. It does not reflect the deduction of income taxes, which would be due when the money is withdrawn. Dollar-cost averaging, a systematic investment plan, does not ensure a profit or guarantee against loss. Investors should consider their financial ability to continue their purchases through periods of low price levels.

“Tick tock.” If time is running short, it’s still worth making the effort to save. If you need to catch up, consider contributing more, postponing your goal year, or perhaps taking more risk with your investments.