3rd Quarter 2010
Market View: Time Is on Your Side
The sooner you begin to save for retirement, the less money you will likely need to invest to reach your end goal. This chart assumes that four investors want to retire at age 65 with $1 million. The investor who starts at age 25 has to save $4,700 per year, or a total of $188,000, to reach $1 million by the time he’s 65 years old (assuming that his investments earn an average 7 percent per year). But the investor who postpones saving for retirement until he is 40 years old will have to save a total of $369,000 ($14,700 per year) to reach the same goal.
Figures based on annual contributions earning a 7 percent average annual return.
For illustrative purposes only — does not reflect an actual account.
This illustration was compiled using information from outside sources. These companies are not affiliated with ICMA-RC. The performance data quoted represents past performance. Past performance is no guarantee of future results.