Why should you enroll in a retirement plan or contribute to an IRA? 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 $1,177? Advantages 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% annual return 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 Additional resources Publication 4118, Lots of Benefits-Retirement Plans Life Cycle PDF How to Take Responsibility for Your Retirement Time Value of Money Calculator Retirement Savings Tips for Individuals Department of Labor's Retirement Savings Toolkit
