Why should you enroll in a retirement plan or contribute to an IRA?
Did you know…
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That retirement can last for 30 years or more?
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That a common rule to follow is that a retiree will need up to 80% of his/her annual income today to retire comfortably?
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That the average benefit amount paid monthly by the Social Security Administration is $1,177?
Advantages
- Tax on employee and employer contributions is deferred until distributed.
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Investment gains in the plan are not taxed until distributed.
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Retirement assets can be carried from one employer to another.
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Contributions can be made easily through payroll deductions.
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Saver’s Credit is available.
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Flexible plan options are available.
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Better financial security at retirement.
Example of time value of money
|
Future Retirement Savings Value - Assuming 6% annual return |
|||
|
Monthly Savings |
5 years |
15 years |
20 years |
|
$50 |
$3,506 |
$14,614 |
$23,218 |
|
$200 |
$14,024 |
$58,456 |
$92,870 |
|
$500 |
$35,059 |
$146,136 |
$232,176 |
Additional resources:
Publication 4118, Lots of Benefits when you set up an employee retirement plan
How to Take Responsibility for Your Retirement
Time Value of Money Calculator
Retirement Savings Tips for Individuals
New Employee Savings Tips - Time Is On Your Side
How to Take Responsibility for Your Retirement