In J.P. Morgan's recently released Guide To Retirement, one chart in the guide notes the advantage of beginning a savings program at an early age. The early start to a savings program generates its payoff due to the power of compounding. Compounding refers to the process of earning return on principal plus the return that was earned earlier. I believe the below chart speaks for itself, but with entitlement reform an almost foregone conclusion, retirees will need savings outside of government provided programs like social security.
|From The Blog of HORAN Capital Advisors|
h/t: Reuters Data Dive