Your 20s are full of milestones. For many, these years involve graduating from college, getting that first apartment, and starting new jobs. In the midst of all these new experiences—and expenses—saving for a long-distant retirement might not feel like a priority. But financial planning advisors say this is the perfect time to start building a nest egg. Here are several reasons why it pays to begin funding your retirement account while young.

3 Reasons to Plan for Retirement Early

1. More Time to Build

A little can go a long way over enough time. If you start saving small amounts around the age of 25, that gives you approximately 40 years to collect what is needed for old age. Not only that, but most retirement accounts operate under the rules of compound interest. This means that anything you can contribute when you’re younger will be worth much more than that by the time you take it out. To achieve an equivalent nest egg later on in life, you’ll have to make payments that are substantially bigger.

2. Take Advantage of Employer Matching

You’ve just started a new job at a company that provides a 401(k) plan. Even better, the company will contribute a certain amount for each payment you make to this savings program. While you won’t be able to enjoy it immediately, this is, essentially, free money. Wondering what will happen if you switch jobs? You can roll your current plan over to the new company’s 401(k) plan. Alternatively, ask a financial planning advisor to help you put it into an individual retirement account without any tax penalties.

3. Enjoy Fewer Expenses

Most people in their 20s don’t yet have to deal with child care costs or monthly mortgage payments. This gives them some freedom to save, even if their income might be lower than it will be in the future or they are balancing some student loan debt. If you don’t believe you have that room in the budget, consider financial planning apps that round all purchases to the nearest dollar and save the rest or selling unwanted items on the internet.

If you’re in your 20s, Hill & Associates CPA’s in Lincoln, NE, can provide personalized financial planning to help you create an attainable path towards retirement. You’ll meet with an experienced specialist who will review your income, debt and goals and suggest a plan tailored for your budget. To get started, call (402) 489-9300 to schedule a consultation. Go online to learn about the firm’s full lineup of products and services.