My mother in law going to retired 5 years later and ask me of any Prudential investment scheme for retirement income. She going to give me RM50K for investment now and going to use it 5 years later.
She request for RM1500 income per month. With RM1500 per month , the RM50K fund will be finished in 3 years. But with PRUretirement growth, RM1500 per month for 5 years. 2 years extra from it should be. Pretty good plan right?
Then, how about me? I should do savings now for my retirement. The I choose PRUretirement accumulator. Monthly savings will secure my retirement income.
How much you should save?
Start savings early will benefits you in longer run.
Monthly investment needed to build an RM500,000 nest egg by age 65
Assuming 8% annual rate of return, with all distributions reinvested.
As you can see, your ability to reach your retirement goal will be affected the longer you delay investing.
Time works for you, because one of the biggest factors affecting the growth of your retirement nest egg is compounding. The longer the period, the greater the benefits of compounding tend to be.