Saving $2000 per year from age 25 to 35 will give you more money at age 65 than saving $4000 per year from age 40 to 50,if all your funds grow at five percent.

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Quizplus · Accepted Answer

This is because of the power of compound interest. Investing earlier allows more time for your money to grow and earn interest. Even though you are saving less per year, the interest earned over a longer period of time can result in a larger total amount saved by age 65 compared to saving more per year but starting at a later age.

Saving $2000 Per Year from Age 25 to 35 Will