Saving is Essential

1
Saving is Essential

• Nest egg requires many years to build.
• You may need at least 7080 of your current
  salary to retire comfortably.2
  
• If you dont save, you may have to work during
  retirement.
  
• Retirement could last over 20 years.

2 Social Security Administration news release,
The Social Security Administration and the
American Savings Education Council Announce
National Save for Your Future Campaign, May
17, 2002, http//www.ssa.gov/pressoffice/retiremin
t.htm Center for Retirement Research at Boston
College, Myths and Realities about Retirement
Preparedness, May 2006, http//www.bc.edu/centers
/crr.
2
How Much Should You Save?

• It can be overwhelming and frustrating.
• Heres a simple rule of thumb
• In your 20s, save 7 of your salary.
• In your 30s, save 10 of your salary.
• In your 40s, save 15 of your salary.
• In your 50s, save 20 of your salary.
• The important thing is to start saving as much as
  you can right now!

3
Paycheck Comparison
Before After Raise Raise
Gross Pay 2,000 2,000 Raise 80 Total Pa
y 2,000 2,080 Minus Estimated Tax Withheld -
380 - 395 Total Take-Home Pay 1,620 1,685 D
ifference in Take-Home Pay 65
For illustrative purposes only. Assumes federal
income tax withholding of 15 and state and local
income tax withholding totaling 4, and does not
account for Social Security or Medicare taxes.
4
Paycheck Comparison
Before After Raise Raise
Gross Pay 2,000 2,080 Minus Contributions -
50 - 100 to Plan (Before Tax) Taxable Pay
1,950 1,980 Minus Estimated Tax Withheld -
371 - 376 Spendable Pay 1,579 1,604
Its a win-win Youre getting 25 more pay per
month, and youre contributing 50 more a month
for retirement, which you havent seen yet!
For illustrative purposes only. Assumes federal
income tax withholding of 15 and state and local
income tax withholding totaling 4, and does not
account for Social Security or Medicare taxes.
5
Growth Over Time
225,044
150,030
88,942
75,015
59,295
29,647
27,625
18,417
9,208
Savings after 10 years
Savings after 20 years
Savings after 30 years
For illustrative purposes only. This
hypothetical example does not represent the
performance of any investment options. It assumes
an 8 rate of return and reinvestment of earnings
with no withdrawals. The illustration does not
reflect any charges, expenses or fees that may be
associated with your Plan. The tax-deferred
accumulations shown above would be reduced if
these fees had been deducted.
6
Budgeting Ideas
5 Monthly costs are based on general averages.
6 This illustration is hypothetical and assumes
an investment in a tax-deferred retirement
account in which you earn an average annual rate
of return of 8, compounded monthly. This
hypothetical example is not based on (or
predicting the performance of) any specific
investment plan or savings strategy.