National Save for Retirement Week

National Save for Retirement Week

October 16-22, 2016


While saving for retirement should be a year round commitment, National Save for Retirement Week is a great time to review your existing retirement plan to make sure you are on track to retire comfortably. If you don't have a retirement plan in place, begin planning and saving now for the retirement lifestyle you envision.

Did you know?

  • You may need 70 – 100% of your existing salary to maintain your current lifestyle in retirement.
  • Your retirement could last 20 years or more.
  • Less than half of U.S. workers have completed a retirement needs calculation.¹
  • For the average worker, Social Security supplies only about 40% of retirement income. The rest is up to you.²

How much will you need to retire comfortably?

Pre-Retirement Salary Annual Retirement Income Needed* Years in Retirement
10 15 20
$45,000 $36,000 $360,000 $540,000 $720,000
$60,000 $48,000 $480,000 $720,000 $960,000
$75,000 $60,000 $600,000 $900,000 $1,200,000

*Represents 80% of pre-retirement salary.

Consider the tax advantages when saving for retirement

  • Traditional IRA contributions grow tax deferred until you withdraw the funds.
  • Traditional IRA contributions could be tax deductible depending on your adjusted gross income.
  • Roth IRA earnings are tax free after your account is 5 years old and you have reached age 59½.
  • Pretax employer plan contributions grow tax deferred until you withdraw the funds.

Contact a Waddell & Reed financial advisor to review your retirement plan or to begin planning. In the meantime, review these resources:

1 Source: Retirement Confidence Survey, Employee Benefit Research Institute, 2015.

2 Source: Social Security Administration, SSA Publication No. 05-10035, 2015.

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Withdrawals of earnings in your Roth IRA prior to age 59½ and before the account is 5 years old may be subject to a 10% early withdrawal penalty.

Withdrawals from a qualified account prior to age 59½ may be subject to a 10% early withdrawal penalty and will involve the payment of federal and/or state taxes. Withdrawals from a qualified employer sponsored retirement plan between ages 55 and 59½ may be exempt from early withdrawal penalties. See your tax advisor.

Investing involves market risk, including possible loss of principal.

Associated Tags: Retirement

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