Why Enroll in Your Employer Sponsored Retirement Plan?
- Social security provides only 25%–50% of the average worker's salary for annual retirement income.1
- Your contributions reduce your taxable income, which means you could pay less in taxes!
- Social security is underfunded and may not be there when you are ready to retire.
- An employer match could help you meet your retirement goals sooner.
- 46% of workers are not confident they will have enough money to retire comfortably.2
- 47% of people expect to keep working in retirement just to make "ends meet."3
- The median household that is headed by someone age 60–62 has less than 25% of what is needed to maintain its standard of living in retirement.4
- Take advantage of dollar-cost averaging: by consistently contributing to retirement each paycheck, you effectively buy more shares when prices are low and fewer shares when prices are high.5
1 Social Security Administration
2 Employee Benefit Research and Matthew Greenwalt & Associates, Inc., 2010 Retirement Confidence Survey
3 Retirement Insights: 2010 Guide to Retirement
4 Wall Street Journal, 2/19/2011
5 Dollar-cost averaging does not protect against a loss in declining markets. Since such a plan involves continuous investments in securities regardless of the fluctuating price levels, the investor should consider his or her financial ability to continue such purchases throughout periods of low price levels.