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Save early to enjoy retirement
Oct 15, 2012

When we are young and in our 20s, the word retirement really does not bother us. But as we start ageing, the word starts to come in our mind a bit too often. Till it finally becomes the only thing we can think about. The reason for this is the need for savings. Something that can help take care of our expenses even when we are no longer working for it. Therefore the key to have a secure retirement is building an adequate repository of savings. Economic times recently ran a study on the quantum of savings that we would have by the age of 60 depending on when we start saving. They have assumed that we invest Rs 8,000 per month at a real interest rate (adjusted for inflation) of 4.76% per annum. Today's chart shows the real savings that we would have when we turn 60 depending on the age at which we start saving for it. Needless to say the results show that the earlier you start the better it is. The reason behind this is the power of compounding. More the number of years in compounding, more the size of savings at the end.

Data Source: Economic Times

This Chart Of The Day was published in The 5 Minute WrapUp - Get ready to bailout more 'Navratnas'!

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