More from The National:
Saturday's best photos, from floods in Germany to harvest festival in India - in pictures
Friday's best photos: from flower fields in Taiwan to a tornado in Alabama
Thursday's best photos: from Pearl Harbor's oldest survivor to 4,000-year-old ostrich eggs
Wednesday's best photos: From Spielberg's double Globe awards to the Pope's portrait
Tuesday's best photos: from carnival season in Switzerland to a blooming Corpse Flower
Monday's best photos: from the Dakar rally to protests in Brazil
WORLD CUP SEMI-FINALS
England v New Zealand (Saturday, 12pm)
Wales v South Africa (Sunday, 1pm)
The most expensive investment mistake you will ever make
When is the best time to start saving in a pension? The answer is simple – at the earliest possible moment. The first pound, euro, dollar or dirham you invest is the most valuable, as it has so much longer to grow in value. If you start in your twenties, it could be invested for 40 years or more, which means you have decades for compound interest to work its magic.
“You get growth upon growth upon growth, followed by more growth. The earlier you start the process, the more it will all roll up,” says Chris Davies, chartered financial planner at The Fry Group in Dubai.
This table shows how much you would have in your pension at age 65, depending on when you start and how much you pay in (it assumes your investments grow 7 per cent a year after charges and you have no other savings).
|
Age
|
$250 a month
|
$500 a month
|
$1,000 a month
|
|
25
|
$640,829
|
$1,281,657
|
$2,563,315
|
|
35
|
$303,219
|
$606,439
|
$1,212,877
|
|
45
|
$131,596
|
$263,191
|
$526,382
|
|
55
|
$44,351
|
$88,702
|
$177,403
|
