The cost of waiting
To reach £1 million by 60, someone starting at 22 pays in about £335,715. Wait until 40, and it's £583,894. Here's why.
Ask anyone how to get rich slowly and they'll say the same thing: start early. It sounds like a cliché, so we put numbers on it.
The question: how much would you need to put away each month to have £1 million by the time you're 60? We've assumed your money grows by 5% a year after charges, which is an assumption, not a promise.
What you'd need to save each month
Starting at 18 takes about £584 a month. Leave it until 40 and it's about £2,433, more than four times as much.
What you'd pay in, and what growth adds
| Start at | Each month | You pay in | Growth adds |
|---|---|---|---|
| 18 | £584 | £294,505 | £705,495 |
| 22 | £736 | £335,715 | £664,285 |
| 25 | £880 | £369,688 | £630,312 |
| 30 | £1,202 | £432,558 | £567,442 |
| 35 | £1,679 | £503,770 | £496,230 |
| 40 | £2,433 | £583,894 | £416,106 |
The person who starts at 22 pays in about £248,178 less than the person who starts at 40, and ends up with the same £1 million. The difference is time: the early starter's growth has years longer to earn growth of its own. That's compound interest.
What this means if you're starting out
- Small and early beats big and late. £50 a month at 22 does more work than £50 a month at 35.
- Your workplace pension already counts. Your employer's share and tax relief go towards these monthly amounts. Our take-home pay calculator shows how much goes in.
- Sort the basics first. A budget and an emergency fund come before investing, so a surprise bill doesn't undo your progress.
Try your own numbers in our asset portfolio calculator or the compound interest calculator.
Common questions
How much do I need to save a month to have £1 million by 60?
Starting at 22, about £736 a month, if your money grows by 5% a year. Starting at 30, it's about £1,202, and at 40 it's about £2,433.
Is £1 million at 60 worth the same as £1 million today?
No. Prices rise over time, so £1 million in 30 or 40 years will buy less than it would now. The comparison between ages still holds, though: starting later always means paying in more.
Does a pension count?
Yes. Your workplace pension, including your employer's share and tax relief, counts towards these monthly amounts, so you may already be closer than you think.
How we worked it out
Each figure is the monthly payment that grows to £1,000,000 by your 60th birthday, paid at the end of each month, with 5% a year growth compounded monthly (0.4167% a month). We've ignored inflation, tax and charges beyond the growth rate. Feel free to use these figures, with a link to this page.
An illustration, not a prediction or personal financial advice. The value of investments can go down as well as up, and you may get back less than you put in. Read our full disclaimer.