How much you need to save each month to retire early

Ray White speaks to Warren Ingram, Co-Founder of Galileo Capital.

Listen to the interview in the audio below.

When planning for retirement, it can feel impossible to save enough.

However, if you are disciplined with saving from early in your career, you can retire on time, or even early.

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Formula for how much you need to never have to work again

If you are in your 20s and want to retire at 65 you will need to save 15% of your total income every month.

This means 15% of your entire salary before deductions or taxes.

If you want to retire earlier, saving 33% of your total income will help you retire at 55.

You will also need to invest these savings in a way that ensures they keep up with inflation.

This means diversifying your investments as much as possible in the stock market.

“You have got to take the risk… you have got to be in the stock markets with the roller coaster ride to be certain you are going to beat inflation over a decade or two.”

- Warren Ingram, Co-Founder of Galileo Capital

Ingram says you can also put 10% of what you save overall towards something short term that excites you, such as travel.

If you set a goal for a trip, and say R10 of every R100 you save can go towards that, it can help you reach your long term goals faster.

Scroll up to the audio player to listen to the interview.