How_Money_Works_-_The_Facts_Visually_Explained

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PERSONAL FINANCE

Pensions and retirement

PENSION CONTRIBUTIONS

Calculations by a British consumer association reveal that

to achieve an annual pension income of $15,000 by age

68, savers starting at age 25 need to save $165 a month.

Starting at 35 would mean having to save $215 a month.

50 % of one’s age

when starting to save is

the percentage of salary

to save for retirement.

RETIREMENT

FUND

A professional financial advisor

can calculate exactly how much an

individual needs to save to meet their

retirement goals, and offer advice on

the different types of pensions and

investments available.

$2,580

PER YEAR

MORTGAGE

AND CHILDREN

Very late starters

will

need to contribute large

percentages of their

salaries—20% if age 40

compared to 10% age 20.

$

Saving at 50+

Savers over 50 may

no longer be paying

a mortgage but may

still need to balance

pension contributions

with other financial

burdens, such as

paying their children’s

college fees or caring

$3,864 for elderly parents.

PER YEAR

$

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Very large contributions

40 45

30 25

70

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US_198-199_Saving_and_investing_for_a_pension.indd 199 13/10/2016 16:21