Why starting early matters

When it comes to retirement, time is the single biggest advantage you have. The earlier you begin setting money aside, the more years that money has to grow before you need it, and those extra years do a surprising amount of heavy lifting.

Someone who starts saving at 25 can often end up with more than someone who starts at 35, even if the later starter puts in more money each month. The head start matters more than the amount, because the early money compounds for longer.

You don't need a big salary to benefit from this. Starting small in your twenties beats waiting until you can afford to save a lot, because the years you skip are the ones that would have grown the most.

If you set aside ₱1,000 a month starting at age 25, you could end up with far more by 60 than if you started the same ₱1,000 at age 35, simply because of the extra ten years of growth.