What to do now to receive passive income in old age

We understand how compound interest works - a simple mechanism that will provide you with significant income in the future.

Alexander Afanasyev

Course author on personal finance "money».

The average pension in Russia - 13 300 rublesThe average pension in Russia in 2018-2019 year per month. This is hardly enough to buy food and medicines.

Maybe in 30-40 years, the government will begin to pay good pensions. Perhaps the children will take care of you. Perhaps in the country has sharply come communism, and no one will need in anything. Perhaps anything, but such hopes you just shoot with the responsibility for their future and shifts it to someone else.

Instead, you can now make simple steps that will provide you with a normal standard of living in retirement. And to help in this compound interest.

What is compound interest

Represent Andrew. Andrew 30 years. is he accumulated million rubles and put it on deposit at 7% per annum in the bank. A year later, his contribution is original and 70 million 000 per cent.

A year later, Andrew regains its 7% per annum, but now they are awarded not on the one million rubles, and at 1.07 million rubles. For the second year he has earned 74,900 instead of 70,000 rubles.

Andrew started the mechanism of compound interest: the bank pays interest on the money earned from interest.

After 35 years, Andrew knocks of 65 and he will retire. By this time, his contribution will be almost 10 million rubles. Each year, these 10 million will provide further all the same 7% - this is 698 thousand rubles a year, or 58,000 rubles per month.

Note: Andrew just put the money in the contribution and did nothing more. And if it is further brought to the account of 9000 rubles per month, the pension he would have nearly 26 million capital and 140 000 rubles per month of passive income.

Does not necessarily start with a million. If Andrew began to delay from zero to 12 000 rubles per month for the same 7% per annum, in 35 years it would have capital of 20 million rubles and 109 000 rubles passive income.

How to calculate your future passive income

We have prepared a table that considers a passive income with your settings. Enter the amount you want to put off, start-up capital, the percentage of contribution and age - the amount of capital to get a pension and monthly passive income.

«Google Drive" to make its values ​​in the table, copy it on your own.

calculate →

What questions might arise

What about inflation?

Of course, inflation will affect your savings. 100 000 rubles a month, and today 35 years later - different money. But that is no reason not to put off, because even after 135 years, 100 thousand rubles a month - more than anything.

Inflation can overtake. Money does not necessarily put on the 7-percent deposit. You can delve into the topic investment - buy reliable stocks, government bonds - and get, say, 12% per annum. It's harder than just leave the money in the bank, but does not require superhuman efforts.

Also, no one bothers to put off today 10 000 rubles per month, after 10 years - 15 000 rubles, and after 20 years - 25 000 rubles. After all, inflation grows and your income, and eventually you will become more valuable and specialist salary will be higher.

And if the bank is closed?

When the bank is closed, the state reimburses depositors up to the amount of 1.4 million rubles. At some point, you will accumulate a sum much higher - will hurt to lose it. Then it makes sense to throw capital at different places, for example, stored on 1.4 million rubles in several banks. So you minimize the risk of losing money.

You can also store assets in equities, precious metals, real estate - every man selects the optimal tools.

And if you default?

With the economy may happen anything - Russia is already held in 1998. Guaranteed way to avoid it is not. adapt to situation: Do not keep all the capital in one currency, follow the news and make decisions based on the current situation.

All these questions, of course, important. And indeed it is likely that you will be disciplined to save money 20 years and then lose everything in one day.

But that is no excuse to do nothing and wait for old age, and there - come what may. Make an effort now to retired to eat well, travel, gifts to please the grandchildren and great-grandchildren. And let the state pension will be a bonus rather than a means of survival.