From the NYC Office of Labor Relations Employee Benefits Program (www.nyc.gov/olr)
National Retirement Security Week (Oct. 18-24) was the first national event formally calling on all employees to take full advantage of employer-sponsored retirement plans. The New York City Deferred Compensation Plan, which consists of a 457 and 401(k) Plan, allows you to set aside pre-tax and after-tax (Roth) savings through easy payroll deductions.
As an employee at our workplace, you may already be participating in a defined benefit pension plan, which will provide you with a foundation once you enter retirement. And, you will also be eligible for Social Security benefits when you reach retirement age. But that won’t be enough. You will need to add your own retirement savings in order to have enough income to live comfortably during your retirement years to fulfill your retirement goals. Experts advise that you will need from 80 percent to 100 percent of your current income to be able to maintain your lifestyle during retirement.
When it comes to saving for retirement, there is never a better time than today to assess your prospects toward meeting your goals. It is important to begin saving today for retirement or consider increasing your Deferred Compensation contributions if you aren’t meeting your goals. National Retirement Security Week is dedicated to showing you how important it is to meet your objectives by contributing regularly and investing wisely for the long term.
Here are a few simple steps you can take today so you will be prepared when it’s time to retire:
- If you save just $10 per week in your deferred compensation account for 40 years and earn an average rate of return of seven percent, you will have over $100,000 in your account.
- If you are saving now and increase your contributions, you can really make a difference in your final total. Over 30 years, adding $25 to your $100 biweekly contribution can increase your account from $264,327 to more than $330,409 (assuming you earn seven percent).
- If you are eligible for the federal Saver’s Credit, you can actually contribute to your retirement savings account and receive money back when you file your tax return.
Take advantage of National Retirement Security Week. Save now — your retirement future starts today.