The complexity of the most ‘retirement’ products that could leave one confused and not knowing where to start is among the problems that hinder most young people as far as investing for their future is concerned.
Haki Pensheni Centre Founder and Pension Specialist Christian Gaya, speaking to a local newspaper in Dar es Salaam recently, revealed that investing, “especially when you are young, sounds like an expensive and daunting task, more especially when you have just started your first job.
Saying that the best time to start is with one’s first salary, Gaya added that smart, disciplined and regular investment in a diverse portfolio can produce good long-term returns for retirement and provide additional income throughout an investor’s working life.
“There are scores of investment options available that don’t require you to have a million dollars. The amount you save depends on what you want and what your goals are,” he added.
According to Gaya, the best time to start investing is with one’s first salary due to fact that there were investment and savings options that require as little as 20,000 per month, depending on one’s monthly salary.
He said it is advisable to establish an investment vehicle early in one’s working life, bearing in mind that savings accumulate while interest compounds without taxes as long as the money is not withdrawn.
“It is wise to start saving early. Usually, the younger you are, the less you likely you are to have burdensome financial obligations,” the specialist observed.