Page 28 - TODAY magazine Issue 1 2021

YOUR DREAMS // FINANCIAL FREEDOM
WHY STARTING EARLY MATTERS WHEN IT COMES
TO RETIREMENT SAVINGS
No-one thinks of retirement and saving when they’ve just started their first job, yet it’s important that you do. Delaying will have a huge long-term impact on your take-home income.
LET’S SET THE SCENE:
• You plan to retire at 65.
• Your investment grows at 4.2% above inflation per year.
• You don’t cash in your savings when changing jobs.
• You want a pension that’s equal to 70% of your final salary adjusted for inflation.
YOU START SAVING AT...
25
35
45
10%
How much of your salary you have to save each month
CALL 0860 60 60 60
NEED A FINANCIAL ADVISER?
EMAIL todayom/c/@2o6ld/m/uIStuSUaEl.OcNomE 2021VISIT Old Mutual Personal Finance
16%
How much of your salary you have to save each month
29%
How much of your salary you have to save each month
WHAT IS THE SECRET OF RETIREMENT SAVINGS?
In two words, compound interest. Compound interest means that you earn interest on interest, and the longer the timeline, the more this will benefit you.
That is why the best time to start saving is always today, even if it’s only a small amount. Plus,starting early means that saving will become second nature to you.