When planning for retirement, the truth is that the earlier you start saving and investing, the better off you’ll be, thanks to the power of compound interest. And even if you began saving late or have yet to begin, it’s important to know that you are not alone, and there are steps you can take to increase your retirement savings. “It’s never too late to get started,” says Debra Greenberg, director, IRA product management, Bank of America Merrill Lynch.
Consider the following tips, which can help you boost your savings — no matter what your current stage of life — and pursue the retirement you envision.
1. Focus on starting today
Especially if you’re just beginning to put money away for retirement, start saving and investing as much as you can now, and let compound interest — the ability of your assets to generate earnings, which are reinvested to generate their own earnings — have an opportunity to work in your favor. “The more you can invest when you’re young, the better off you’ll be,” Greenberg says.