Vickie Lange, Head – Research, Best Practice & Academy at Alexander Forbes:
“A common reason given by members for not preserving their retirement savings is that they are too low to warrant the trouble and expense of a preservation fund. A total of 58% of those who chose not to preserve had retirement savings of between R0 and R25 000.
“People need to be aware of the longer-term impact of not preserving even relatively modest amounts when they are younger because of the power of compounding.
“The reality is that the amounts contributed in the early years of accumulation add the most to your benefit at retirement. Thanks to the impact of compound interest, the first 10 years of your savings can contribute as much as half of your savings at retirement.” (Emphasis supplied)
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