What is a significant benefit of starting to save for retirement early?

Starting to save for retirement early has the significant benefit of providing more time for compound interest to grow. This means that the money you invest early on can earn interest not only on the initial principal but also on the accumulated interest from previous periods. This compounding effect can significantly increase the amount of savings over time as the growth of savings accelerates.

For example, if you invest a certain amount at a young age, by the time you reach retirement, the total value can be substantially higher than if you had started saving later, even with the same amount contributed regularly. The earlier you start saving, the longer the compounding has to work in your favor, resulting in a larger retirement fund.

The other options do not capture this essential benefit of early savings. While it's true that starting early can reduce risk exposure due to a longer time horizon allowing investors to ride out market fluctuations, the primary advantage lies in the power of compounding. Living without a budget may not be an outcome linked directly to saving early, and while salary potential could contribute to overall savings, it doesn’t inherently relate to the benefits of starting retirement savings early.