Quote:
Originally Posted by madlex
... my dad (who is roughly the same age) retired in his late 50s and makes >10x her monthly salary just from pension (funds) ... That's something I never even thought about in my late 20s or early 30s. ...
Talking of pension funds, this might be of interest to some younger players:
"You are never too young (or too old!) to start a pension, but let’s have a simple example of why waiting can damage your retirement pot.
Let’s take Michael and John, two friends, both the same age.
When Michael turns 24 he starts paying €1000 per year into a pension. He pays into his pension for 12 years at which point he hits hard times and he stops paying into the pension. He leaves it to one side and never pays in again.
At age 24 John however feels he is too young for a pension so leaves it. At age 36, the year Michael stops, he decides he needs to do something about his retirement and starts paying €1000 per year into his pension. He pays every year up to his 68th birthday.
John pays 32 years of contributions and Michael only pays 12. Both pay €1000 per year, who do you think has a bigger pension fund at age 68?
http://prosperous.ie/wp-content/uplo...144845.bmp.jpg
Notes
Both funds grow at the same rate of 6% per annum
Both sets of figures ignore inflation and calculations are done on a straight line basis"
*
(I'm not certain that the figures are correct for these days, but definitely the principle of starting saving for a pension as young as possible is.)