As you begin the new year, what do you see when you look back? Is it the heap of forgotten new year’s resolutions from years past? This year, think about making a resolution that’s easy to keep: increasing your contributions to your retirement plan.
What makes it easy? When you participate in your retirement plan, your contributions are automatically deducted from your paycheck and put into the investments you’ve selected. So even if you never change your original contribution amount, you’re still saving money for your retirement. But consider how much more you could potentially accumulate if you periodically increase the amount you contribute. It’s as simple as changing the percentage of your pay that goes into your plan account.
Where will I find the money? The new year is a good time to review your budget to look for places to trim. Cutting spending is an effective way to come up with money you can use to increase your contribution amount. And adding part of any raise you receive to your retirement account can also give your savings a boost.
Why can’t I wait? The sooner you start saving more for your retirement, the more years your savings will have to potentially grow and compound. Increasing your contribution amount whenever you can may mean a larger account balance at retirement.
Still not convinced? Remember that you’ll probably need to save more for retirement than for any other goal that you have.
This newsletter is designed to provide useful information about retirement plans and investing your plan account savings. While the information contained herein was obtained from reliable sources, it cannot be guaranteed as to completeness or accuracy. Before acting on any of the information provided, consult your professional advisor.
FR2017-1010-0101/E Copyright 2017 by DST Systems, Inc.