Aside from the highly increased risk of lung cancer, throat cancer, heart problems and circulation problems, there’s the premature aging to consider and the fact that it impairs your senses of smell and taste. Plus, there’s the socially awkward stigma of smelling like smoke.
Now the Investor’s Chronicle has offered up yet another reason to quit smoking; the chance of making nearly a million.
Paul Claireaux, researching on behalf of the Investor’s Chronicle, calculated that a 20-year-old smoker of 20 cigarettes a day could put saved cash into a tax-efficient pension; he or she would have raked in close to a million by retirement.
In fact, by putting the £7.50 a day savings into a SIPP, the ex-smoker would have a pension pot of £530,000 by the age of 55. Continuing the saving till the age of 65 would garner £953,865 by the age of 65.
The calculation relies on the assumption that a 20-year-old smoker invests the money into a pension which has a 60% employer contribution. The government then tops it up by 20%, assuming the ex-smoker is a lower rate tax payer.
Higher rate tax payers get a 40% government top up, which obviously would garner a larger sum by the time of retirement.
According to the article, smoking 10 cigarettes a day after retirement will require a pension pot of about £36,000.
After retirement, however, smokers receive high annuities thanks to their reduced life expectancy.
Today, the benefits of quitting smoking are common knowledge between smokers and non-smokers alike. Those who can’t kick the habit are increasingly turning to alternatives. With health services offering free support for quitters and patches and gum on prescription, cigarette companies seem to be fighting a losing battle. Plus, across the world ‘plain’ packaging is being enforced on packets, emblazoned with horrific images of throat cancer or deceased smokers.
E-cigarettes offer nicotine and the feeling of using a cigarette without all the associated health risks. Plus, they’re good for around 30 cigarettes so could save you money. You can work out how much you can save on the calculator below.