Time on your hands

For many of us, trying to focus on our retirement, which may be 20 or 30 years off in the future, is hard. 

We have so many competing priorities for our attention today, it’s no wonder that a long-term goal to save for your retirement just doesn’t seem to hold our attention… until we are nearing retirement.  

What if you were to take the approach of just a little, contributed regularly, over the long term? An amount that you would barely miss, yet, over the long term, would tally up to make a huge difference to your end balance.

Consider these sums. Could you afford $20 per week? That’s less than four lattes per week!

Would this be worth it to you?

Starting at age 30, $20 turns into $54,677 more, compared to starting at age 50, which would only provide $19,862 more.

These sums show you what time on your hands does with regular contributions. 

Setting up a regular contribution, like a drip feed, really adds up over the long term, because of the magic of compounding interest. With time it’s mighty powerful right? 

And what about if you went that little bit further and added $50 per week. That’s the difference between taking your lunch to work every day versus buying it. 

Look at the difference it can make to your super. 

*Assumptions Age (30 years): Current Balance $30k. Annual Salary $70k. Retirement Age 67. Salary Inflation 3.0%. SG Contributions 9.5%. Net Investment Return 6.0%. Annual Inflation Rate 2.5%. Admin Fee (p.a.) $85.80. Tax Rate - Contributions 15.0%. The projected amount is shown in today’s dollars. In years with negative returns, there will be no earnings to reinvest.

**Assumptions Age (50 years): Current Balance $30k. Annual Salary $70k. Retirement Age 67. Salary Inflation 3.0%. SG Contributions 9.5%. Net Investment Return 6.0%. Annual Inflation Rate 2.5%. Admin Fee (p.a.) $85.80. Tax Rate - Contributions 15.0%. The projected amount is shown in today’s dollars. In years with negative returns, there will be no earnings to reinvest.

Use time to your advantage and see how much of a difference you can make to your final retirement outcome? 

***Assumptions Age (30 years): Current Balance $30k. Annual Salary $70k. Retirement Age 67. Salary Inflation 3.0%. SG Contributions 9.5%. Net Investment Return 6.0%. Annual Inflation Rate 2.5%. Admin Fee (p.a.) $85.80. Tax Rate - Contributions 15.0%. The projected amount is shown in today’s dollars. In years with negative returns, there will be no earnings to reinvest.

****Assumptions Age (50 years): Current Balance $30k. Annual Salary $70k. Retirement Age 67. Salary Inflation 3.0%. SG Contributions 9.5%. Net Investment Return 6.0%. Annual Inflation Rate 2.5%. Admin Fee (p.a.) $85.80. Tax Rate - Contributions 15.0%. The projected amount is shown in today’s dollars. In years with negative returns, there will be no earnings to reinvest.

Disclaimer - 
Actual investment earnings may differ from the projected earnings in this communication. You shouldn’t rely on the projection or the information for the purposes of making a decision about a financial product, including a decision about a particular product, fund or strategy. 

REI Superannuation Fund Pty Ltd ABN 68 056 044 770, AFSL 240569, RSE L0000314 Trustee of REI Super (ABN 76 641 658 449), RSE R1000412 disclaim all liability and responsibility to anyone who relies, or partially relies on information or projections in this communication. 
In presenting this information REI Super has not considered any individual person’s objectives, financial situation or particular needs. Individuals need to consider whether the advice is appropriate in light of their goals, objectives and current situation. Members should obtain and read the Product Disclosure Statement for REI Super before making any decisions and consider talking to a financial adviser before making an investment decision. Past performance is no indication of future performance.  
This information has been prepared and published by REI Superannuation Fund Pty Ltd ABN 68 056 044 770 RSE L0000314 AFSL 240569. REI Super ABN 76 641 658 449 and RSE R1000412 MySuper unique identifier 76641658449129 for the general information of members of REI Super. Although REI Super makes every reasonable effort to maintain current and accurate information, you should be aware that there is still the possibility of inadvertent errors and technical inaccuracies. The REI Super Helpline and the REI Super website are provided by Mercer Outsourcing (Australia) Pty Ltd ABN 83 068 908 912 and Mercer Financial Advice (Australia) Pty Ltd (MFA) ABN 76 153 168 293, Australian Financial Services Licence (AFSL) #411766. AUGUST 2015.