If you begin investing at age 25 instead of age 20, you need to invest $120 more per month to have $1M at retirement. If you begin investing at age 45 instead of age 40, you need to invest $718 more. Why is the difference between 40 and 45 so much greater than the difference between 20 and 2

The difference between 40 and 45 is much greater than the difference between 20 and 25 because there is less time remaining in the retirement. In 20 to 25 age, more years are remaining for the retirement i.e. 35 to 40 years while on the other hand, in 40 to 45 age, less number of years are remaining to retirement which is about 15 to 20 years so that's why the person with lower age less money per month as compared to higher age person to reach the same amount.

Parrain Parrain · Answer 2 · 2022-01-20T09:44:34+01:00

The difference between these ages described is down to the time left till retirement.

Investing for retirement

You need to have a goal of a certain amount you want to reach by the time you retire.
If you start saving early, you can reach that goal by setting aside a lower amount every month.

A person in their twenties will have around 40 years to retire so they can save less per month as it would have a longer time to accumulate. A person in their 40s however, has around 20 years to retirement and so needs to save more.

In conclusion, less time to requirement means more investment.

Find out more on retirement saving at https://brainly.com/question/25409767.