Investments company Fidelity International has suggested that by starting your retirement savings plan early, your returns when reaching retirement age could be dramatically increased.
For every pound paid into a pension scheme at the age of 25, the company claims, the potential retirement value could be as much as £7.88 – more than double the potential value of one pound invested at the age of 40 (£3.37).
The earlier pensions savings begin, Fidelity said, the less likelihood there was of having to work beyond retirement age or suffering "a dramatic cut in income".
"The key message here is that people should start saving into a pension scheme early to maximise returns," said Simon Fraser, Fidelity International's president of institutional business.
"The research shows the potential value of every pound invested diminishes rapidly as an individual gets older," he continued.
Mr Fraser also added that only just over a quarter (27 per cent) of respondents to a retirement savings survey who did not have savings said they had no plans to invest for their retirement before the age of 39.To read more about pensions, click here.
© Adfero Ltd