Don’t wait to start saving for retirement. The sooner you get started, the greater your chance of reaching your retirement goal because compound interest can work its magic.  To quote Einstein, “Compound interest is the eighth wonder of the world.  He who understands it, earns it … he who doesn’t … pays it.”

So here’s how the math works: To have $1 million at age 65, a 25-year-old needs to save $345 per month for 20 years then never save another cent, assuming the investments earn 8% per year over those 40 years.  A 45-year-old would need to save $1,698 per month for the next 20 years to reach the same goal.

Those savings goals may be out of reach for both the younger and older person. The key is to make saving for retirement a priority and start saving some amount each month