Can you retire by age 65? This is the age that most Singaporean, 62% of them, can afford, according to The Straits TImes published on 20 Dec 07. About 22% of them don’t even know when they can retire! So do you want to be one of t hose 62% or the 22%?
To be sure that you can retire as planned, it is never too early to start planning when you have just started work. The Power of Compound Interest is amazing. The younger you start your regular savings in an investment, the less money you need to set aside monthly to achieve your goal. A $200 savings per month in your early 20s is able to generate near to a million dollar retirement fund in 40 years’ time at a 9% annual interest. You will need about $500 per month savings to achieve the same goal if you have 30 years to save. And it becomes $1400 with 20 years to save and increase phenomenally to $4800 if you only have 10 years left. So start now. It is good to start late than never and you cannot retire at all!