I've been thinking about doing a blog like this for a while... It is such an important topic that people, especially the under 30's, just don't even think about, letalone plan for!
I've been doing a bit of research, which was not actually that easy as I couldn't find the stats that I was after, especially in NZ pages, but, I did have some interesting findings I thought i'd share.
One wesite I came across had the following:
A survey commissioned by the BBC has revealed that saving for a pension is not a top priority for many UK adults.
The report revealed that half of adults in the UK aged between 20 and 60 are not putting anything towards a pension with the situation being worst for those under the age of 30.
The reason for not saving towards their retirement is a lack of funds with the priority being paying off their debts.
Furthermore, younger adults said they felt retirement was too far away to be worth planning for.
Meanwhile, 45% of the 41 to 60-year-old category are not paying into a pension fund with a number of reasons being cited such as redundancy and women who never joined a pension scheme because of giving up full-time work to have children.
This explains that basically HALF of people are not doing anything about their reitirement - that is pretty staggering in my opinion!
This website explained componding interest quite well I thought http://www.sheknows.com/articles/807585.htm.
Both money and years factor into how well your retirement account will do over time. The sooner you start, the more your money will compound or grow, even if you begin by investing only a small amount each month. The interest you earn will continue to compound over time, growing the value of your account substantially as the years add up.
Example
The earlier you start investing, the more time your money has to compound, which earns you a higher reward in the end. Here’s an example of consistently investing $100 per month at 5% compounded quarterly until age sixty.
The earlier you start investing, the more time your money has to compound, which earns you a higher reward in the end. Here’s an example of consistently investing $100 per month at 5% compounded quarterly until age sixty.
Starting when you're 20... By age 60... $152,410
Starting when you're 30... By age 60... $83,525
Starting when you're 40... By age 60.... $41,175
Sorted.org.nz did have some good information for when you actually want to start the planning phases and working out how much you will need. See http://www.sorted.org.nz/home/sorted-sections/retirement
Even if it just $100-$500 per month, it's something. Or even if it is just kiwisaver, it's something. Maybe even a rental property perhaps? At least then you can claim on the tax losses and offset them against your personal 9 - 5 income. My mix at this stage is property and kiwisaver, it's not much but it's something. Sounds all very cliched but honestly a little bit of planning now can save a hell of a lot of hard work and unnecessary stress later.
You are eventually going to get to retirement age one day, and I don't know if anyone agrees with me but the older I get the quicker the years are going.
Unfortunately we don't live in Never Land. The one thing you can 100% depend on in life, is time.
No comments:
Post a Comment