Postponing saving for retirement by five to 10 years could reduce retirement income by nearly a quarter, according to a new study.

A worker contributing 10 percent of his income annually to a retirement plan beginning at age 35—rather than age 30—will receive 11 percent less in annual retirement income, according to research released Thursday by the Insured Retirement Institute.

Over the course of a 25-year retirement, the reduced income adds up to $62,000. If saving for retirement is postponed to age 40, income will be reduced by 23 percent, totaling $127,000 over a 25-year retirement, said the Washington, D.C.-based research firm.

“When saving for retirement is delayed, the benefits of compounding interest are gone and can never be reclaimed,” said Cathy Weatherford, IRI President and CEO.

The worker who starts to contribute to a retirement plan at age 35 would need to save 16.5 percent of annual income to have the same amount of retirement income at age 65 as the worker who started contributing 10 percent annually at age 30.

A worker starting to save at age 40 would need to put aside more than 26 percent of income annually to achieve the same level of retirement income at age 65 as the person who started saving 10 percent at age 30.