Retirement is a long time away and it can seem like the contributions you make don’t make a huge difference. However, with a little maths (or this tool) you can see exactly how much another day of freedom costs.
Personal finance site Keep Thrifty built a tool (which you can find at the source link below) to estimate how many days of freedom you can buy with an increase to your retirement fund. It’s a rough calculation, but you might be surprised at how cheap a day costs. Simply enter your current account balance, the amount of extra you plan to contribute and your estimated growth rates. The calculator will return an estimate of how many days that extra contribution will pay you. So, how much is one more day of freedom worth to you?
Would You Trade $25 For an Extra Day of Freedom? [Keep Thrifty via Rockstar Finance]
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2 responses to “Find Out How Many Days Of Retirement Your Contributions Can Buy With This Tool”
They refer to an Investment Annual Growth Rate, which defaults to 8%. If this is what I think it is (return on your investment), can LH please tell me where I can get 8% returns on my super?
Since 1986, the ASX200 has apparently returned 9.5% p.a
http://www.fidelity.com.au/fidelityP2/?LinkServID=B91D14A6-B125-E8DC-BB83AAD60C35BC5A