Why your 20s are worth more than your 40s for retirement
If you take one number away from this article, make it this one: a euro saved at 25 can grow into roughly double what the same euro saved at 35 becomes by the time you retire. Not because you're smarter or luckier — purely because it has ten extra years to compound.
The maths behind the gap
Compounding rewards time more than it rewards the size of your contribution. Money invested earlier goes through more cycles of growth building on growth, so a modest amount saved in your 20s can end up outperforming a much larger amount saved later, simply because it had longer to work.
Illustrative example: assuming a typical long-term average growth rate, the same monthly contribution started ten years earlier can grow into roughly double the ending balance by retirement — purely from extra compounding time, before any difference in contribution amount.
This isn't a reason to panic if you're starting later — it's a reason to start now rather than waiting for the "right" moment, because the cost of waiting compounds too.
Why national pensions alone rarely close the gap
Across OECD countries, the average worker with a full career can expect a mandatory pension — state plus workplace schemes combined — to replace around 63% of their pre-retirement net income, with wide variation by country. That's a meaningful base, but it's rarely a full replacement of your working income, which is exactly why personal savings, started early, carry so much weight.
What this looks like in practice
You don't need a large salary or a perfect financial plan to benefit from this. Even a small, consistent contribution — set up once and left alone — captures most of the advantage. The habit matters more than the amount in the early years.
Why it feels hard to prioritize in your 20s
Retirement is decades away, and there are more immediate calls on your money: rent, travel, paying down student debt, building an emergency fund. That's normal, and none of it means retirement saving has to wait until "later." Even redirecting a small amount into a pension or investment account starts the clock.
The takeaway
Starting early is less about discipline and more about giving your money time to do the work for you. The exact amount matters less than getting started — you can always increase your contribution as your income grows.
This article is educational and general in nature — it isn't personalized financial or tax advice, and rules vary by canton, sector and personal circumstance. For decisions specific to your situation, check with your national pension authority or a licensed adviser.