• Autus Team

If you don’t start now, then when?


July is the National Savings Month for South Africa. There are different reasons South Africans save money, but this article emphasises the importance of starting at a young age. I want to illustrate the effect of compound interest on retirement savings with two basic calculations.


Person 1 starts to save R1,000 per month from age 25 in an aggressive portfolio that generates a long-term return of 10% and escalates the contribution by 5% per year. At age 65, the person saved a total amount of R 16,217,847.00.


Person 2 starts to save R1,000 per month from age 30 in an aggressive portfolio that generates a long-term return of 10% and escalates the contribution by 5% per year. At age 65, the person saved a total amount of R 8,885,729.00.


If you wait five years before you start to save for retirement, the effect can be catastrophic.


If you don’t start now, then when?


There are different reasons why South Africans save money, and for any specific reason, please feel free to contact one of the Advisors at Autus Private Clients.

Autus Private Clients (Pty) Ltd is an authorised financial services provider (FSP 4766) in terms of the Financial Advisory and Intermediary Services Act (Act No. 37 of 2002).