Waiting too late to start saving
The best time to save for retirement i s at the start of your career. If you are a young person reading this article, i t i s likely that you are educated and earning a relatively decent i ncome. It is also likely that you are already not saving enough for retirement.
With regard to investing, ideally you postpone consumption now, for a larg-
BY SUNEL VELDTMAN, CEO of Foundation Family Wealth er consumption in the future. In plain language, it means that
A saving of R1 000 per month for ten years from age 25 will result in retirement capital of R2. 5m at age 60 (assuming a 10% annual return). The person who starts at age 35 and saves until age 60 will accumulate approximately R1m less than the 25-year- old who only saved for 10 years. The notable difference is a result of the
Fortunately, thirty is now the new twenty and forty, the new thirty! We will retire later and live much longer, so no matter what your age you are, start saving now.