Why Invest?

Our quality of life in retirement is strongly linked to the quality of the financial plans we make throughout our lives. Sadly, too many people reaching retirement realise their plans are insufficient.

According to a 2005 survey conducted by Citibank Australia, around one in five retirees aged over 65 didn't start saving for retirement until age 50 - in some cases allowing as little as five years to build a nest egg that may need to last two decades or more. Incredibly, over 19 percent of those over 65 have nothing saved at all.

The length of time we save for retirement is a major factor in determining how well we're likely to fare in the post-work years. The question to ask yourself is "will your retirement savings last the distance?"

I'm not suggesting that you never have a holiday, always eat at home and turn into a hermit; rather it's about finding the right balance. It's important to take responsibility for your own financial well being, irrespective of your age. Imagine retiring on four times your current salary instead of perhaps forty percent of it. This can be the difference investing now can make to your retirement.