Starting to save for retirement in your 20s provides the advantage of compound interest, allowing your savings to grow significantly over time. Even small, regular contributions made early can grow into a substantial nest egg by retirement. Most financial experts recommend contributing to tax-advantaged accounts like 401(k)s or IRAs, where your savings can grow tax-free or tax-deferred.

Delaying retirement savings means you lose out on valuable compounding, and you may have to contribute larger amounts later to catch up. Some employers offer matching contributions, which further accelerates the growth of retirement savings, making it even more beneficial to start early. The earlier you start, the more you can take advantage of these long-term benefits.