Saving is Essential  Nest egg requires many years to build.  You may need at least 70%–80% of your current salary to retire comfortably. 2  If you don’t save, you may have to work during retirement.  Retirement could last over 20 years. 2 Social Security Administration news release, “The Social Security Administration and the American Savings Education Council Announce National ‘Save for Your Future’ Campaign,” May 17, 2002, Center for Retirement Research at Boston College, “Myths and Realities about Retirement Preparedness,” May 2006,

How Much Should You Save?  It can be overwhelming and frustrating.  Here’s a simple “rule of thumb”:  In your 20s, save 7% of your salary.  In your 30s, save 10% of your salary.  In your 40s, save 15% of your salary.  In your 50s, save 20% of your salary.  The important thing is to start saving as much as you can right now!

Gross Pay$2,000$2,000 Raise 80 Total Pay$2,000$2,080 Minus Estimated Tax Withheld Total Take-Home Pay$1,620$1,685 Difference in Take-Home Pay$65 Paycheck Comparison* Before After Raise Raise * For illustrative purposes only. Assumes federal income tax withholding of 15% and state and local income tax withholding totaling 4%, and does not account for Social Security or Medicare taxes.

Gross Pay$2,000$2,080 Minus Contributions to Plan (Before Tax) Taxable Pay$1,950$1,980 Minus Estimated Tax Withheld Spendable Pay$1,579$1,604 Paycheck Comparison* Before After Raise It’s a win-win: You’re getting $25 more pay per month, and you’re contributing $50 more a month for retirement, which you haven’t seen yet! * For illustrative purposes only. Assumes federal income tax withholding of 15% and state and local income tax withholding totaling 4%, and does not account for Social Security or Medicare taxes.

Savings after 10 years Savings after 20 years Savings after 30 years $9,208 $29,647 $75,015 $18,417 $27,625 $59,295 $88,942 $150,030 $225,044 Growth Over Time* * For illustrative purposes only. This hypothetical example does not represent the performance of any investment options. It assumes an 8% rate of return and reinvestment of earnings with no withdrawals. The illustration does not reflect any charges, expenses or fees that may be associated with your Plan. The tax-deferred accumulations shown above would be reduced if these fees had been deducted. $50 monthly $100 monthly $150 monthly

Budgeting Ideas Expense Give Up How Often? Monthly Savings 5 Value if Invested for 25 Years 6 Dinner outOnce a week$100$95,737 Lunch outTwice a week$50$47,868 Coffee and bagel Twice a week $20$19,147 Vending machine soda Once a day$12$11,488 Movie ticketOnce a month$10$9,574 5 Monthly costs are based on general averages. 6 This illustration is hypothetical and assumes an investment in a tax-deferred retirement account in which you earn an average annual rate of return of 8%, compounded monthly. This hypothetical example is not based on (or predicting the performance of) any specific investment plan or savings strategy.