Save first and start early

Updated : Sep 10, 2019 in Articles

Save first and start early


Hi, I’m Cheryl with Saskatchewan Pension Plan. I’m going to speak to you on savings goals. At Saskatchewan Pension Plan we’re here to assist you in saving for retirement. As soon as you hear the word ‘retirement’, often the immediate reaction is, “That doesn’t apply to me.” “I’m just beginning my career.” and “I’m way too young to be thinking about retirement.” But saving is important at every age. How do you picture retirement? Do you see those years filled with relaxation and leisure or do you plan to travel the world? Some may see it as a chance to stay home and spend time with family and grandchildren, or simply pursue their hobbies such as gardening, volunteering or golfing. No matter what your retirement expectations are, there will be a level of financial need. How are you going to afford living during retirement and when should you start saving? Let’s start with an example: Mrs. Smith set a goal to retire when she turns 65. She estimates that she will need approximately $4,200 of income before taxes each month until 90 years old. This would require her to have approximately 1 million dollars saved by age 65. As you can see starting earlier requires her to set aside less of her monthly income in order to end up with one million at retirement. She could still reach her investment goals if she was to wait and start later in life, but the longer she waits the higher the amount she needs to set aside monthly. You can forego saving earlier in life at the expense of having a higher financial burden later, but ideally an individual should begin planning for retirement as soon as he or she enters the workforce. Starting early gives the ability to put aside less now to have more later. But no matter your age it isn’t too late, just start now. Even the smallest amount will benefit you later. There is a Chinese proverb, “When is the best time to plant a tree? 20 years ago. The second best time is now.” Thank you for your time and if you want any further information please call us at the number displayed or visit our website. [Music]

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