Are You Investing Enough?

 

Building Your Nest Egg

Will you have enough saved to retire? Financial planners suggest an annual retirement income equaling 75% to 90% of your last working year’s salary will allow you to retire with few changes in your lifestyle. Social Security only replaces about 25% to 40% of salary for retirees today. It may provide even less in the future.

To make sure your retirement nest egg is adequate, consider increasing your regular retirement plan contribution amount.


Every dollar counts

You may feel you can’t afford to invest much more now. But with compound earnings, a small increase in your monthly contribution can really make a big difference over time.

 

 

Lower your taxes


Contributing more to your retirement account can reduce the size of your tax bill in two ways.

  • If you ask to have money deducted from your salary and put into salary and put into your retirement account, that added contribution  is deferred from income taxes. An additional Employer contribution is also deferred from income taxes.

  • If you are an ordained minister, additional contributions from you or your church are also deferred from self-employment taxes.

Don’t delay

The longer you put off increasing your contribution, the more it will cost you each month to reach your retirement income goal.

 


Note:  There are legal limits on retirement plan contributions.  Contact your vendor to determine how the limits apply to you.
 

Adapted from Are You Investing Enough? by the Annuity Board of the Southern Baptist Convention.