Sunday, March 23, 2014

Saving At A Younger Age Pays Off In Retirement

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

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