Quit Smoking and Embark on the Path to Becoming a Millionaire

Recent research suggests that if an average smoker quits at around 20 years old, they might easily become a millionaire by retirement. Paul Claireaux from the Investor’s Chronicle highlights that investing £7.60 per day (what you’d spend on a pack of cigarettes) into retirement funds from age 20 could grow to about £1 million by age 65.

These numbers take inflation into account, showing a total fund of £2,843,068 in today’s value, which would be about £935,865. This assumes you’re a basic taxpayer earning £35,000 annually, with a 20% tax reduction on retirement contributions and 60% employer contributions.

Significant savings are achievable, especially for smokers in places like the UK, Australia, and the US, where cigarette taxes have significantly increased. Many smokers are either quitting or switching to cheaper and healthier options like e-cigarettes. Some even look for affordable options at online stores.

Quitting nicotine isn’t easy, as many know, but more people are becoming aware of the health and financial benefits of stopping. E-cigarettes are 50% to 70% cheaper and come with fewer health risks than regular cigarettes. You might pay about £40 initially for a starter pack, but after that, maintaining your nicotine intake costs less than half of traditional cigarettes. Some online shops even offer vaporizer discounts.

While the savings may not reach a million, those who switch to e-cigarettes and save the difference can certainly boost their retirement fund compared to those who don’t.