Step (a) : You need a tentative result of your pension
The calculator provides an approximate future rate of pension. The tentative result obtained might be far lower when compared to the present salary being earned. Most people would want to take that step further to receive earnings in retirement that are higher than that received solely from the Social Security Department to ensure that their present standard of living is maintained.
Step (b) : Set priorities: Save or pay off debts?
Strictly speaking you need to do both.
However, you must keep in mind the interest rates related to your debts and that you would be better off with just options to choose from for your investment other than trying to save with pending significant cash flow drains. The most common debts are home loan, a kitchen or a bedroom bought via your credit card, car loan and home finishes loan. The interest rates on your debt are much higher than the interests you are likely to receive on your retirement savings nest egg – particularly since you are currently provided with low-interest rates on investments and savings. Therefore, making a list of all debts involved, paying off your debts as quickly as possible is a wise decision; so is prioritising your debts to firstly get rid of most expensive ones.
It is never to late to save, so you can just start at a later stage in life but in order for compound interest option to work significantly, larger contributions would need to be made in this case. Sadly, saving later limits your achievements and you may find yourself having to adjusting your lifestyle or delaying retirement for your future income to come to match your present financial situation.