How Much do I Need to Contribute?
How you spend your retirement years will largely depend on how much you contribute today. The sooner you start to contribute, the more time your savings has to grow.
But how much savings is enough? Many professionals say, you’ll need about 80 percent of your current income to maintain your same lifestyle in retirement. Since you can’t rely on Social Security alone and many people do not have employer pension plans to meet retirement income needs, it’s up to YOU to save enough money.
Sound difficult? Saving can be easy... all you have to do is get started.
Why Invest in a 401(k)?
- It’s affordable -- You decide how much you want to contribute per paycheck. You can change that amount at any time, increasing your contribution as your income grows
- It’s easy -- The amount you decide to contribute is deducted from your paycheck and deposited into your 401(k) account
- Tax advantages With a traditional 401(k) plan, your contributions are deducted from your paycheck before taxes and, you won’t have to pay income tax on the money in your 401(k) until you use it.
- Your employer may help – Your employer may also contribute to your plan, so the more you save, the more money you may be able to receive
For informational purposes only. Should not be construed as legal or investment advice, a promise of benefit or guarantee of investment performance.