Ah, retirement. It’s a time many of us look forward to, but if we’re not diligent savers and investors, those Golden Years may not be as wonderful as we’d hoped.
The good news is a little goes a long way when you start saving early for your retirement. Surprisingly, you don’t have to stash away much to get a big return on your investment.
The trick is starting early so your money accumulates interest for as long as possible. Even small, regular deposits can potentially earn more than larger contributions made for a shorter amount of time.
Just look at how modest monthly contributions, at 6% growth, can add up to big savings over the long run.
$50/month
# of years Total savings with interest
10 years $8,163
15 years $14,415
20 years $22,782
30 years $48,963
$100/month
# of years Total savings with interest
10 years $16,326
15 years $28,831
20 years $45,565
30 years $97,926
$150/month
# of years Total savings with interest
10 years $24,490
15 years $43,246
20 years $68,347
30 years $146,888
Even if retirement feels like a lifetime away, let accumulated interest help you get the most out of your retirement savings.
For example, take one person who contributed $50 per month for 30 years and another who contributed $150 per month for 10 years. They’ve both paid $18,000 into their savings, but the first person accumulated $48,963 after 30 years thanks to accrued interest whereas the second person only earned $24,490 after 10 years. Often times, it pays to start early, no matter the amount.
Starting building your nest egg today! Give us a call at 1.866.863.6237 or visit one of our advice centres to chat with an advisor.