Don’t Wait to Save More in Your Retirement Plan
Does it seem like it’s never a good time to save more for retirement? Do other financial needs always seem more pressing? Whether it’s repaying a college loan, buying a car, taking a vacation, saving for a house, or just paying household bills, there are always going to be pressures on your budget. If you keep waiting for a “good” time, you may never increase the amount you are saving. Then you could be at risk of not having a retirement that’s financially secure.
Don’t Leave Your Future to Chance
Because the future is impossible to predict, you can’t know exactly how much money you’re going to need for retirement. But you do know that the more money you save now, the better off you’re likely to be later on. That’s why it’s smart to save as much as possible in your retirement plan.
Timing Is Everything
The sooner you start saving more for retirement, the better. An early start will give your money more time to benefit from compounding. If you wait too long to start saving more, your money will have less time to grow. Delaying a contribution increase could mean that you’ll have to put aside larger amounts later to reach your retirement savings goal.
So make the choice today to make saving for retirement a priority. Take a close look at your budget to find places where you can cut back a little. Adding those few extra dollars to your retirement savings plan could make a big difference in your account value over time.
A Little More Now, a Lot More Later
Increasing the amount you save for retirement earlier in your career may make a big difference in the amount you have when you’re ready to retire. Compare the account value after 30 years of four different saving strategies.
$100,452 – Save $100 per month for 30 years
$123,554 – Save $100 per month for 10 years, the $150 per month for 20 years
$135,101 – Save $100 per month for 5 years, then $150 per month for 25 years
$149,643 – Save $100 per month for 5 years, then $150 per month for 10 years, then $200 per month for 15 years
This is a hypothetical example used for illustrative purposes only. An average annual return of 6% and monthly compounding is assumed. It is not representative of any particular investment vehicle. Your investment results will be different.