What is the most likely consequence of not saving for retirement early?

Not saving for retirement early can lead to limited financial stability in the future. This consequence is linked to the time value of money, which emphasizes that money saved and invested early can grow significantly due to compound interest. When individuals delay saving for retirement, they miss out on years of potential growth, which can result in a less secure financial situation later in life.

Planning for retirement is crucial because it allows individuals to build a substantial nest egg that can support them once they are no longer working. Without early savings, many may find themselves struggling to meet their financial needs during retirement, leading to a reliance on social security benefits or a reduced standard of living. This situation can create stress and uncertainty, further underscoring the importance of starting retirement savings as soon as possible.