Here’s the story of Save Now, Save Later, and Catch Up.

Three friends, all 25 years old, decide to employ different strategies to save for their retirement. Save Now chooses to do it right away and save while he’s still young. He sets aside Php24,000 per year for the next ten years in a fund which earns 10%. He stops investing on the 10th year and decides to keep his money invested in the fund. This is how his investment grows.

Save Later decides to wait a little while. He knows he’s still young and wants to earn more before he saves. On his 35th birthday, he decides to try Save Now’s strategy. And because he’s earning more, he chooses to set aside Php40,000 per year for the next ten years in a fund which earns 10%. He stops investing on the 10th year but keeps his money in the fund. This is how his investment grows.

Catch Up sees what his two friends have been doing. He hasn’t started a retirement fund and knows he has some “catching up” to do. So he saves Php60,000 every year but, unlike his friends, he continues to invest up to the end of his career. This is how his investment grows.

After seeing these three retirement strategies, which strategy would you like to follow?

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