The Cost of Waiting to Save for Retirement
Want to save $1 million dollars by age 67? You'd better get started soon.
The longer you wait, the more you'll have to put away each month to reach your retirement goals.
- 27 years old? You have to put away $214 a month to reach $1 million dollars.
- Start at age 37, and you're putting away $546 a month to reach your goal.
- Begin at age 47, and you'd have to put away $1,497 a month.
- Wait until age 57, and you're putting away a hefty $5,168 a month.
- Wait until the last minute (age 62) and you'd have to stash $13,258 a month to reach $1 million by age 67.
So, the sooner you start saving, the fewer dollars you'll have to put away each month to reach your retirement goals. Don't pay the high cost of waiting!
These examples assume a hypothetical 9% constant rate of return. Assumes payments are made at the beginning of the compounding period. Rate of return is a nominal interest rate compounded on a monthly basis. Actual investments will fluctuate in value. The illustration assumes reinvestment of dividends and does not include fees and taxes which would lower results. Investing entails risk, including loss of principal. Units, when redeemed, may be worth more or less than their original value.
In Canada, Common Sense Funds segregated fund products are underwritten by Primerica Life Insurance Company of Canada. Mutual Funds offered by PFSL Investments Canada Ltd., mutual fund dealer.