This article will help you:
You already know that funding your retirement means saving some of your earnings during your working years. But how much of your earnings should you be saving? The answer depends on multiple factors, including:
To make matters more complex, each of these factors may change for you over time. As a result, planning your savings for retirement can feel like trying to hit a moving target.
The good news is that the Advantages Retirement Plan™ will help you design a retirement savings plan in a few easy steps.
The Advantages Retirement Plan™ will prompt you for information such as your annual pre-tax income today, your target retirement age, and how much you’ve saved to date.
Based on several data points you input, the Advantages Retirement Plan™ will calculate for you what your monthly savings rate should be. In its calculations, the Advantages Retirement Plan™ incorporates various factors such as:
If you choose to contribute less than the default monthly savings rate, the Advantages Retirement Plan™ will prompt you with a message indicating that you’ve chosen a contribution amount that will not get you to your target retirement income, and ask if you would like to set up an auto-escalation feature, which can automatically increase your monthly contribution at a later date and/or keep up with annual inflation rates and your income growth. Auto-escalation is a great hands-off way for you to ensure that you are building up your savings as efficiently as possible. You can always update or opt-out of the auto-escalation feature if it doesn’t feel right for you.
You can log into your Advantages Retirement Plan™ at any time to make changes to your retirement savings plan, and in fact, the Advantages Retirement Plan™ will encourage you to do so especially as your earnings change over time.