Wait­ing too late to start sav­ing

Finweek English Edition - - MONEY - A R1 000 saved now will yield a much larger amount ( even af t er t ak­ing i nfl ati on i nto ac­count) in twenty years’ time. force of com­pound­ing. pow­er­ful

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.

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