How long does it take to reach 400K in SRS account?

I did 2 comparison of how long it takes to reach 400K in SRS account. As of now, SRS withdrawal are penalty free if you make the withdrawals at the statutory retirement age (of 62 for me) prevailing at the time you made your first SRS contribution. There are also tax relief from SRS contributions.


The 1st case  assumes that you don't reinvest the dividends, and at 5% yield rate per year.



The 2nd case assummes that you dont' reinvest the dividends, and at 3% yield rate per year.


If you start to contribute to SRS from age 30, by the time you are 47, you would have already hit the 400K mark. There's still 15 years before you can reach the penalty-free withdrawal age.

At a lower yield of 3%, you would have hit 400K by age 50. Still need 12 years before you can withdraw from SRS.

Maybe a better way to do it is to start contributing at age 42, assuming the withdrawal sum is still 400K. But the statutory retirement age would be different then.

One option is to make a SRS contribution now to lock down your the withdrawal age, and make subsequent contributions from age 42.

Please give me your comments and thoughts about this.

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