Smarten up your savings Staff Muscling up Smarten up your savings

TIME is MONEY The sooner you start the more you will save $100 per month at 4%pa compounds to: $6652.00 over 5 years $14774.00 over 10 years (that’s $1470 more than 2 X 5 years) $36800.00 over 20 years (that’s $7252 more than 2 X 10 years and $10192 more than 4 X 5 years)

Save what you can $150 per month at 4%pa compounds to: $9978.00 over 5 years (that’s $3326 more than saving $100 per month) $22161.00 over 10 years (that’s $7387 more than saving $100 per month) $55200.00 over 20 years (that’s $18400 more than saving $100 per month) When you get a pay rise try to put as much of that as possible into savings Get used to spending less and saving more

Watch the return $150 per month at 6%pa compounds to: $10518.00 over 5 years (that’s $540 more than 4%pa) $24705.00 over 10 years (that’s $2544 more than 4%pa) $69653.00 over 20 years (that’s $14453 more than 4%pa) Using default conservative Kiwisaver funds will suck the life out of your retirement savings Do some research, consider growth funds which will be better in the long term

How much do I need? Try this calculator from Gareth Morgan http://www.gmi.co.nz/investment/retirement-calculator.aspx If you have $400 000 in investments at 65 returning 5%pa then that will give you a retirement income of $50000 per year (after tax and incl National Super) At age 30 that means saving $83 per week and at 40 saving $157 per week At 50 it’s $350 per week