Putting money into your plan (contributions)

Some industry analysts think you should contribute 10–15% each pay period for retirement, but you need to find out what’s right for you.1 You can't just rely on Social Security to cover it. Contributing to your retirement plan can help you live the retirement you imagine.

Ways your plan can help your money grow include:

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Tax deferral
You won't pay taxes on your money until it's withdrawn
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Your earnings can be continually reinvested
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You can update your deferral or investments any time

You might want to consider increasing your deferral a little bit each year to help build your retirement savings.

The Paycheck Impact Calculator can tell you how your take-home pay can be affected by starting to contribute or increasing your contributions to an employer-sponsored retirement plan.

Even small increases to your contribution help

Increasing your contribution can make a big difference later with little impact to your paycheck. Refer to the example below:2,3

Chart showing hypothetical growth by Increasing from 9% to 10%. From a $25,000 salary, a 1% increase could hypothetically grow from #220,178 to $244,642; from a $50,000 salary, a 1% increase could hypothetically grow from $444,356 to $489,284; from a $75,000 salary, a 1% increase could hypothetically grow from $660,534 to $733,926

[1] How to figure out if you are saving enough for retirement, CNBC (April 2022).
[2] Illustration assumes bi-weekly deferrals accumulated at 7% for 30 years.
[3] This example is only an illustration and isn’t intended to reflect the return of any actual investment. Investments don’t typically grow at an even rate of return and may even lose money. The effect of taxes and costs of investing have not been reflected.

Investing involves market risk, including possible loss of principal, and there is no guarantee that investment objectives will be achieved.