Save Early or Pay Dearly: Your 401(k) Is Running Out of Time

April 28, 2025

If you think you have plenty of time to start saving for retirement, think again — you’re making the biggest mistake with your 401(k).

While Americans scramble to invest, diversify and pick the “perfect” retirement plan, most are missing the simplest trick in the book: start early or lose big.

“The number one mistake people make with 401(k) plans is not enrolling early — or at all,” said Dr. Barbara O’Neill, money expert and CEO of Money Talk. Waiting even a few years can cost you tens — or even hundreds — of thousands of dollars by the time you hang up your work boots.

And here’s the kicker: it’s not about how much you make, or whether you pick the right fund. It’s about time — and how much you waste it.

Tick, Tock — Your Money’s Losing Time

Most companies offer 401(k)s, but too many workers drag their feet, missing out on one of the greatest forces in finance: compound interest.

Translation: the earlier you save, the less you have to hustle later.

“Many people think they have ‘plenty of time’ to ‘save later’ and forgo the awesome power of compound interest to build wealth over time,” O’Neill warned.

Here’s some brutal math:

Start saving at 25? You’ll need to invest around $6,400 a year to hit a cool million by 65.
Wait until 35? Now you’re coughing up $12,600 a year.
Delay until 45? Buckle up — you’ll have to invest $27,000 annually.

That’s more than quadruple the effort just for putting it off twenty years.

Excuses, Excuses

Sure, life happens — student loans, new homes, everyday bills. But delaying your 401(k) contributions doesn’t just hurt future you — it crushes you.

O’Neill’s advice? Save early and save often. Even small contributions now will snowball into serious cash later. And you don’t have to choose between saving for retirement and buying a house — you can do both.

“You can’t earn interest on money that wasn’t saved,” she added.

Bottom Line: Your future self is already begging you — sign up, stash cash, and let time do the heavy lifting. Otherwise? Prepare to work a lot longer than you planned.