Financial experts have warned young South Africans (SA) that delaying investments by just a decade could reduce their retirement savings by up to R650 000 ($39 320).
The alert comes as soaring living costs, debt, and economic uncertainty prevent many youths from prioritising long-term financial planning.
Analyst Lungile Macuacua emphasized that despite these economic hurdles, starting small and investing consistently can mitigate long-term losses and build significant wealth over time.
“So, we started from a simple but uncomfortable idea: for young people, probably the biggest financial cost isn’t making a bad investment, but in fact, waiting too long to start. So, we showed that by having two individuals. Essentially, we have one who starts investing when they’re 25 rather than at 35. So, just 10 years apart, putting away the same amount of money each month into a diversified fund could end up, uh, around R650 000 ($39 320) better off by retirement age at 65.”
–SABC–
