Image

Benefits of Participating in Your Employer’s Retirement Plan

Did you know…

  • That retirement can last for 30 years or more?
  • That a common rule to follow is that a retiree will need up to 80% of his/her annual income today to retire comfortably?
  • That the average benefit amount paid monthly by the Social Security Administration is $1,230?

Employee Benefits

  • Tax on employee and employer contributions is deferred until distributed.
  • Investment gains in the plan are not taxed until distributed.
  • Retirement assets can be carried from one employer to another.
  • Contributions can be made easily through payroll deductions.
  • Saver’s Credit is available.
  • Flexible plan options are available.
  • Better financial security at retirement.

Example of time value of money

Future Retirement Savings Value Assuming 6%

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
Source: Internal Revenue Service