Like every other financial goal, there is a cost of delaying, which could be significant depending on how long you delay. Here’s an example. Two friends, Ram and Lucky start working for the same company at 25. During their first 20 years, Ram saves Rs.1, 000 a month through a retirement plan, while Lucky saves nothing. After 20 years, Ram stops contributing entirely. Meanwhile, after a decade of no savings, Lucky starts saving at age 35, saving that same Rs.1, 000 a month. But unlike Ram, Lucky continues investing till he retires at 60. Ram has put only Rs.2.4 lakh into his account while Lucky has saved Rs.3 lakh. But because Ram started sooner, he has Rs.31.58 lakh in his account at retirement, versus only Rs.12.98 lakh for Lucky, assuming they both earn 10per cent a year on their money (See: Early Bird advantage). That’s the power of time and compounding.