Image

Benefits of Participating in Your Employer’s Retirement Plan

Why should you enroll in your employer’s retirement plan?

Did you know that…

  • Retirement can last for 30 years or more?
  • A common rule to follow is that a retiree will need up to 80% of his/her annual income today to retire comfortably?
  • The average benefit amount paid monthly by the Social Security Administration is $1,177?

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