THE COST OF DELAY
People often delay starting to invest as they prioritise today’s financial needs. However, investing in your financial future earlier could result in it being more affordable over the long term.
For example, if you were to make a gross investment of £1,000 p.m. into an investment product at the age of 30, a projected fund of £528,000 could be available at age 60 based on the assumptions shown below. This table shows what could happen if the start of regular annual contribution was delayed by 5,10 or 15 years.
This example makes a number of assumptions:
The average annual investment growth before charges is 5.00% each year. Investment charges of 1.33% each year. Contributions are invested monthly in a pension and are shown before charges are taken into account.