Retirement Topics - Benefits of Participating in Your Employer's Retirement Plan |
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Why should you enroll in your employer’s retirement plan?
Did you know…
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That retirement can last for 30 years or more?
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That a common rule to follow is that a retiree will need up to 80% of his/her annual income today to retire comfortably?
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That the average benefit amount paid monthly by the Social Security Administration is $1,177?
Employee Benefits
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Tax on employee and employer contributions is deferred until distributed.
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Investment gains in the plan are not taxed until distributed.
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Retirement assets can be carried from one employer to another.
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Contributions can be made easily through payroll deductions.
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Flexible plan options are available.
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Better financial security at retirement.
Example of time value of money
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Future Retirement Savings Value Assuming 6%
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Monthly Savings
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5 years
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15 years
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20 years
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$50
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$3,506
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$14,614
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$23,218
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$200
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$14,024
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$58,456
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$92,870
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$500
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$35,059
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$146,136
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$232,176
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Additional Resources:
Publication 4118, Lots of Benefits when you set up an employee retirement plan
Time Value of Money Calculator
New Employee Savings Tips - Time Is On Your Side
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Page Last Reviewed or Updated: June 17, 2011
