When you’re in your twenties and thirties, the last thing in your mind is saving for retirement. You have plenty of time before you have to worry about retirement, right?

7 reasons to save for retirement before hitting 40

Saving for retirement before you hit your fortieth birthday, however, has a number of advantages that can’t be ignored.

1. Your interest will have longer to compound, substantially increasing your earnings

That means that even small contributions in your twenties and thirties can add up to big savings by the time you reach retirement age.

Compounding interest makes those small contributions into a substantial retirement account by the time you’re ready to retire.

2. Saving earlier means you can retire earlier

You won’t be able to retire until you’ve built up your retirement savings to support you throughout your retirement years.

That includes planning for both your regular expenses–food, housing, gas, and so on–and the potential for medical expenses, home repairs, and other potential major expenses.

You’ll also need your retirement account to be able to take care of your long-term care needs if that day arrives.

The sooner you start putting back that money, the sooner you’ll be able to head into retirement with a solid budget in place that will take care of all your needs.

3. Early savings frees you to make critical life choices later

A mid-life crisis in your forties or fifties is fairly common.

You may also feel the desire to change your work habits long before you reach retirement age.

When you choose to save for retirement early, you build a solid savings account.

This means you won’t spend those years scrambling for a job. This will allow you to adequately prepare for retirement instead.

That means you’ll have the freedom to make choices that take you off the beaten path, even if they don’t necessarily provide for you financially as well as your former job.

4. Saving a little in your twenties and thirties can decrease the amount you have to save later

Compound interest comes into play once again here.

By putting aside a little money every year now, you can prevent yourself from needing to scramble to put together your retirement account later in life.

Since it has longer to gain interest, you’ll need to put aside less to gain the same return.

5. Early retirement savings allows you to maximize what your company is offering you

Many companies offer substantial incentives to encourage their employees to contribute to their retirement plans, in some cases even matching your contributions up to a certain percentage.

When you choose not to set aside money for retirement in your twenties and thirties, you’re missing out on years of contributions that your company could be making to your retirement plan–and as a result, you’re missing out on free money that could help see you through your retirement years.

6. Sudden health problems won’t be as devastating

As you get older, you become substantially more prone to a variety of potential health problems, many of which can make it impossible for you to continue working in your current job.

Fortunately, early retirement planning makes it easier for you to cope with those health issues, whether it means taking the early retirement you’re now prepared for or making a move to a less-taxing career.

7. Strong financial planning bleeds over in other areas of your life

From looking for auto insurance quotes to seeking out coupons that will improve your overall budget, there are plenty of financial planning opportunities that will allow you to live the lifestyle you want both now and throughout your retirement years.

By investing in your retirement as early as possible, you’ll find it easier to develop good financial habits that will stick with you through a lifetime.

The earlier you start saving for retirement, the better off you will be when the day comes that you’re ready to start enjoying your golden years and stop clocking in every day.

A strong retirement savings account will allow you to live the lifestyle you want throughout your retirement years.

Don’t put it off; instead, start planning for retirement today.

What do you think? Have you already started saving for your retirement? I would love to hear your thoughts in the comments below.

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