Marlborough Magazine August 18 | Page 35

INVESTING IN YOUR FUTURE 35
INVESTING IN YOUR FUTURE 35

What plans have you put in place for retirement ?

Advice from Phil Muir , Business Owner , NZHL - Blenheim
Many people think of saving for retirement as either too difficult to try and navigate , or that it is still too far away to need to commit any real thought to .
The reality is that the earlier you start to plan for your retirement , the easier it is . The benefit you get from compounding interest in your favour means the earlier you start to put money away for retirement the faster you will reach your goal . Starting to save for retirement ( age 65 ) at age 30 means that you will only need to save approximately 60 % of the money you would , compared to starting to save at age 50 . The other 40 % is the money you will have made from compounding interest .
There are various recommendations on the internet that outline how much money you need to have saved by your retirement date to have sufficient income to support yourself . The big question is how much income do you need to maintain the kind of lifestyle you expect ? To work this out you need to work back from the income you need in retirement so you can anticipate the amount of money you need to be saving .
One of the most important parts to starting a savings plan is to pay off your debts .
Compounding interest does not work so well in your favour until you have paid off anything you are being charged interest on .
Seek out good advice on what you need to do to move forward with your financial plan . A financial advisor at your local bank , mortgage broker or accountancy office is a good place to start . It is never too early to be prepared , the earlier you plan , the better off you will be in the long run .

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