Retirement timing
Cost of Delay for Retirement Saving (Illustration)
Delaying retirement saving can shorten the time contributions are invested in a model. This page uses a simple timeline-style example to show the idea and links to a calculator to test your own timing.
Published: December 22, 2025 · Updated: December 22, 2025 · By FinToolSuite Editorial
Model retirement timing in the calculator
Compare start-now vs start-later retirement scenarios under your own assumptions.
Disclaimer
Educational purposes only; not financial advice. Examples are illustrative; real returns vary and investments can go down as well as up. Retirement rules, tax treatment, and account features vary by country and provider. Fees, taxes, inflation, and rules can change over time.
Quick answer
Longer horizons can magnify small differences in models. Delays reduce the number of contributions and the time they compound. Outcomes are not guaranteed—use ranges and keep assumptions consistent when comparing.
See catch-up ideas (illustrative)Why retirement timelines amplify “delay”
Retirement horizons often span decades. In a model, contributions made earlier have more periods to grow, so starting late can mean fewer contributions and fewer compounding periods. Personal context, risk comfort, and account rules still matter, and results are assumptions—not promises.
Illustrative retirement-style timeline
Example only (simplified contributions): £200 per month, 5% assumption, no starting balance. Retirement age and years are illustrative, not advice.
| Scenario | Start age (illustrative) | Years contributing | Estimated balance at 65 | Estimated difference |
|---|---|---|---|---|
| Start now | 30 | 35 | ~£227,000 | — |
| Start 5 years later | 35 | 30 | ~£166,000 | ~£61,000 lower (illustrative) |
These figures use a simplified monthly-contribution model for illustration only. Use the Cost of Delay Calculator to compare your own timing.
Try this timeline in the calculatorWhat drives the difference
- Length of the delay window.
- Monthly amount or lump sum size.
- Assumed return (gross vs net).
- Horizon length until retirement age.
- Fees, taxes, and inflation (net outcomes).
Important risk note
Returns can be volatile and negative in some periods. Assumptions are not guarantees. These results are estimates for planning and education, not forecasts. See how long to double money for rate-to-time intuition.
What if I started late?
In models, people sometimes narrow a delayed start by adjusting contributions or extending time. That is scenario testing, not advice. Explore ideas in how to catch up after delaying investing.
How to test your own scenarios
- Create “start now” and “start later” scenarios with the same assumptions.
- Keep the horizon consistent for fair comparison.
- Save and compare outputs side-by-side.
FAQ
Does starting retirement saving earlier always help?
Earlier contributions have more modeled time to compound, but outcomes depend on returns, fees, and consistency.
How much does a 5-year delay matter?
In the illustration above, a 5-year delay with the same assumptions shows a lower estimated balance. Use the calculator to test your numbers.
What return assumption should I use?
Use conservative/base/optimistic ranges to see sensitivity. Keep the same assumption across scenarios for fair comparisons.
Do fees, taxes, and inflation matter?
Yes, they reduce net outcomes. If you want to approximate them, test a lower net assumption alongside your gross assumption.
Are results guaranteed?
No. All outputs are estimates based on assumptions. Returns can be volatile and negative in some periods.
What if I can’t contribute much right now?
You can model smaller amounts, longer horizons, or a delayed start to see the estimated impact. That is scenario testing, not advice.
How can I catch up later?
Scenario testing can show how increasing contributions or extending time affects the gap. See the catch-up guide linked above.
What does “time horizon” mean?
It’s the length of time until the end point you’re modeling—such as years until retirement age in this illustration.
Next steps
Try three scenarios: start now, start in 2 years, start in 5 years. Keep assumptions the same to see the modeled timing gap.