CONTRIBUTION PERIOD AND GROWTH PERIOD
The CONTRIBUTION period is the time during which you contribute to your retirement
fund. You may contribute to your retirement for 30 years for example, and then let it grow for
another 10 years during which time you do not contribute. This 10 year period is
called the GROWTH period. In most cases the CONTRIBUTION period and the GROWTH period
are one and the same.
Contributions are generally regular periodic contributions made monthly, every paycheque
(every 2 weeks), quarterly, yearly, etc; but from time to time contributions may
also involve an initial lump-sum that is often larger than the periodic contributions.
In some cases you may simply make a one-time lump-sum contribution and no further
The GROWTH period is often the same as the CONTRIBUTION period. However, if they
are not the same:
The INCOME period is the period after CONTRIBUTION and GROWTH during which you
draw all the money in your retirement fund as monthly income.