A 5-year delay in saving 1,000 shekels a month costs about 290,000 shekels

A new calculator shows: a five-year delay in monthly savings of 1,000 shekels, at a 5% return, costs about 290,000 shekels at the end of 35 years – five times the amount not deposited. To close the gap, the monthly deposit must be increased to 1,359 shekels.

A new calculator from Bizportal, published on N12, illustrates the heavy price of delaying the start of savings. A deposit of 1,000 shekels per month for 35 years, at an annual return of 5%, accumulates to about 1.1 million shekels. A five-year delay reduces the amount to about 815,000 shekels – a gap of about 290,000 shekels, even though only 60,000 shekels were not deposited during the delay years. Explanation: compound interest – early deposits accumulate the most return. The calculator allows choosing a monthly amount, number of years, and a delay of one, five, or ten years, and displays the missing amount, the final amount, and the required monthly deposit to close the gap. With a ten-year delay, the deposit rises to 1,892 shekels per month, almost double, and the gap reaches about 523,000 shekels. The amounts are nominal; at 2% annual inflation, the cost of a five-year delay is equivalent in current purchasing power to about 147,000 shekels. The calculator is suitable for savings beyond mandatory pension, such as an investment provident fund or a training fund.