The cost of delaying your retirement

A set of triplets decide to start their retirement planning at different ages in their life, all three of their Retirement Annuities have an annual contribution increase of 12% and make 12% growth per annum until retirement age:

Harry starts at age 19 with a R350 per month RA, and he can retire at age 55 with *R7’580’000 or at age 65 with *R27’638’000. Tom starts at age 29 with a R350 per month RA, and he can retire at age 55 with *R1’930’000 or at age 65 with *R7’580’000. Dick starts at age 39 with a R350 per month RA, and he can retire at age 55 with *R426’000 or at age 65 with *R1’900’000.

To catch up to Harry:

Tom would need to start his Retirement Annuity at R1’312 per month at age 29 and invest *R1’500’000 more than Harry did…..
Dick would need to start his Retirement Annuity at R5’230 per month at age 39 and invest *R3’900’000 more than Harry did…..

Moral of the story is, don’t be a Dick, START your retirement planning NOW!!!

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