Helping You Reach Retirement

The Cost of Waiting



When it comes to saving for retirement, the earlier you start - the better. In fact, starting as early as you can may have more impact on your future success than any other single action you take. The reason is because investing is really a two-part story.

The first part is the money you and, sometimes, your employer contributes to your plan each year. If you contribute $6,000 a year starting when you're 25, you'd contribute a total of $240,000 by the time you reach the age of 65.

The real power of investing happens in the second part: That's what happens when the money you invest grows in value and has the opportunity to compound. That means your earnings make more money.

Take a look.

Let's assume for example that your investments earn 6% a year over these same 40 years. Your account balance would grow to be more than $928,000! But look what happens if you start even five years later at the age of 30. When you reach 65, your balance would grow to be a little more than $668,000. You contributed only $30,000 dollars less over 35 years instead of 40, but your contributions didn't have as many years to compound.

You can see that the difference is huge! Even one year makes a difference.

Remember, this is only an educational illustration and not an investment recommendation or guarantee of performance.

If you have questions about this or any topic related to YOUR retirement plan savings path, please call our Help desk at 1-866-253-6767. We're here to help.