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 |