Saving now vs later: Calculating the difference

Saving now vs later

In an earlier post, I posted a static chart with some calculations on the difference between saving now vs later, and how saving for 10 years from age 25 to 35 can leave you with more in retirement savings than waiting to save the save amount each year for 30 years from age 35 to 65. Following the simple retirement calculator I posted yesterday, I wanted to post here a dynamic calculator you could use to calculate how this difference would vary by rate of return and number of years.ย  The assumptions this time are:

  • You start with zero savings.
  • Scenario 1 is saving for a few years between now and “later”, vs saving for all the years between “later” and the finish line in scenario 2.
  • You earn exactly the same real rate of return every year with no volatility in your investments.
Current Age:
Amount saved annually:
Number of years between now and “later”:
Number of years from “later” to the “finish line”:
Real Rate of investment return (%):
Saving now vs later: which adds up to more?
Age Base PlusOne
45 100 101