When should you start saving? The answer is simple: immediately. The sooner you put money aside for your pension, the longer your assets can grow and the easier it will be for you later in retirement.

 

Ideally, you should start putting money aside as soon as you earn your first salary. The more money you accumulate in your account, the more interest you will earn.

For example, if you save €3000 every year for 10 years at the age of 25 and then stop saving at 35, you will have equity of €30000. Over the next 30 years, assuming an annual return of 8%, your assets will increase to 472000@, even though you haven't paid in a cent since the age of 35.

Now let's assume that you haven't saved anything until the age of 35 and then put aside €3000 for the next 30 years until you retire. At the age of 65, you will have saved €90000 of your own money, but with the same assumed annual return of 8%, your wealth will only increase to €367000.

That makes a big difference. The earlier you start saving for your retirement, the less of your own money you have to contribute.