Why is starting to save early beneficial for retirement planning?

The choice highlighting the benefits of starting to save early for retirement planning emphasizes the power of compound interest. When savings are invested over a longer period, they not only generate returns on the initial amount deposited but also earn returns on the accumulated interest from previous periods. This compounding effect means that, over time, the total value of the investment can grow exponentially.

Starting to save early allows individuals to take full advantage of this compounding. For example, if someone begins saving at a young age, even small contributions can lead to a significantly larger retirement fund by the time they reach retirement age. The longer the money is put to work, the more it benefits from compounding, which leads to a greater potential for wealth accumulation.

The other options do not accurately articulate why early saving is advantageous. While they may touch on related concepts, they don't encapsulate the core benefit of compound interest as the correct answer does. Thus, the emphasis on allowing compound interest to accumulate succinctly captures the fundamental reason why early savings can drastically improve financial outcomes in retirement.