The Power of Saving More in Your Retirement Plan

Your company’s retirement plan is a valuable benefit that can get you on track for an awesome retirement. The example below shows an employee earning $40,000/year, paid weekly. Their employer provides a common match of 100% of the first 3% of pay and 50% of the next 2% (said another way: if this employee saves 5% of their pay the company will give 4% - free money!). If this employee reduces their take-home pay by just $20 per paycheck (a 3% savings/deferral rate), it could amount to $289,215 in retirement savings over the next 30 years! Check with HR to learn more about your company’s retirement benefits.

The real question is: can you afford not to save?The chart above is based on a $0 starting balance. Assumes regular investments into a 401(k) plan over a specific period of time with an average annual rate of return of 8%. Does not include any pay increases/changes. Examples are hypothetical and do not represent the performance of any particular investment.