My friends at the Motley Fool have worked out that, if you are currently 45 years old and want to retire at 65 (or any other 20 year horizon) with a £100,000 nest egg, then you need to save £6.28 a day.
You need to put this amount into an ISA and get an average return of 7% a year. After 20 years you will have £100,000 to supplement your pension. The power of compounding.
£6.28 a day doesn't sound like a huge amount, but the 20 year time horizon might be a bit of a problem. Would be for me, I know that!
Something for you middle-aged youngsters to think about. Time seems to go by much faster after your mid-forties.
Be well.
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