Did you know that if the average 30 year old took up the max Super Latte Challenge* to cut out a couple of cafe lattes—or frappucinos, or mega-mocha-decaf-soy-lattes (with extra froth)—each day, and put the money they saved into their super, they could end up with $162,000 or more at retirement? (See nitty-gritty below)
You're not the only one
We recently surveyed Australia's under-40 workforce and found that 63.9% of participants would happily take up our $5 a day challenge to save more for retirement. (Although, to be fair, most people preferred to give up costly lunches than caffeine; not that we're a nation of addicts or anything).
45.9% of respondents said spending a fortune everyday on their bought lunch had to stop, 13.7% were happy to cut back on the boozy Friday night drinks, whilst 6.5% would say goodbye to their ciggies. It seemed the least favoured option for participants was to ride to work in order to save on parking.
The bad news, and the good
We know you want to enjoy life, which means buying clothes, the latest gadgets, going to see movies, and the occasional trip to Thailand. Then there's the pressure of long term financial commitments like HECS, a car, starting a family, or finally saving up for that house deposit.
But even if you're living from paycheck to paycheck, even small changes can have a sizable impact on your retirement savings with minimal compromise on lifestyle.
Often you need to build up to a savings goal. It's a bit like climbing a mountain, you don't just wake up and climb the mountain, you train in small bursts in the lead up to the big goal. Financial security in retirement is the same.
Feeling motivated? Take up the challenge now and join us at max.
Join nowOur figures are based on a 30 year old investing $5 per day in super ($1,825 pa), and retirement age of 65. It assumes contributions attract the Government Co-contribution based on a salary of $40,000 and no career breaks. Assumes investment returning 8.5% and management fee of 1%.
* Our Latte Challenge is based on concepts proposed by author David Bach.
