Planning for Your Retirement
Are you on track for retirement?
With the advancement of healthcare and agricultural technology, the average number of years we live has risen sharply in the past few decades. However, so has the money needed to maintain a decent life after retirement. Many people are caught off-guard some years into their retirement, because they do not realize that it could be so costly. This is particularly so in an inflation-ridden economy.
Retirement doesn’t mean doing nothing at home. Quite the contrary, it could mean doing a lot. It means that you finally have the leisure to do what you really want to. While they vary from person to person, activities after retirement usually require some spending, whether you are learning to play golf or becoming a stamp-collector.
Start saving early is the key
Retirement can be more expensive than you think. However, time is on your side because every dollar makes a big difference when it comes to early savings.
Two different retirement saving plans
|Saved each month||$5,000||$5,000|
|Starts at age||20||35|
|Stops at age||35||65|
|Total contribution||$900,000(over 15 years)||$1.8 million(over 30 years)|
|Savings achieved at 65
(assuming an annual
return of 5%)
|$5.7 million||$4.1 million|
These hypothetical examples are for illustration only and do not represent any fund performance.
Remember: The sooner you start saving for your retirement, the more you will earn from compound interest, and the less you will need to save!