Increasing Your Contributions

Increasing Your Contributions
Increasing Your Contributions to your employer-sponsored retirement plan

Even a Little Bit Adds Up

How many ads have you seen for something that can be yours for “just $10 a month?” These offers are appealing for one reason: Most of us can afford the 10 bucks. And what if $10 a month could net you almost $10,000 – at a time when you need it most, such as retirement?

How much more can you afford?

How much are you contributing to your employer-sponsored retirement plan? $25 a month? $50? $100? When was the last time you took out a calculator to figure out how much that will actually net you at retirement? Is it enough? Certainly you’d contribute much more if you could afford to do so. But have you considered the impact of contributing just a little more?

Even if you can afford to contribute only $10 more per month, that $10 could add up to nearly $10,000 over 30 years. And $20 more each month could be worth almost $20,000 when you retire – you’ll be thankful then that you made the small sacrifice now.

An additional contribution of:10 years20 years30 years

$5/month could add up to...

$812.37

$2,267.20

$4,872.56

$10/month could add up to...

$1,624.73

$4,534.39

$9,745.13

$15/month could add up to...

$2,437.10

$6,801.58

$14,617.70

$20/month could add up to...

$3,249.47

$9,068.77

$19,490.26

Assumes 6% rate of return and contributions made at the end of each month. This illustration is hypothetical, is not guaranteed, and it is not intended to reflect the performance of any specific investment, There is no assurance that increasing contributions will generate investment success. In addition, these figures do not reflect taxes or any fees or charges that may be assessed by the investments. The tax-deferred investment will be subject to taxes on withdrawal. Systematic investing does not ensure a profit nor guarantee against loss. Investors should consider their financial ability to continue consistently in up as well as down markets.

Do you really need it?

Still think you can’t afford to save just a little more? Not so fast. Take a few seconds to review the money-saving ideas below. You’ll be surprised at how skimping on a few ―"ice-to-haves" now can help you pay for the "must-haves" later:·

  • Skip going to the movies this month. That could mean an extra $15 or more towards happier songs for the future.
  • A $3 latte every day of the week adds up to $90 each month! A daily $1 cup of coffee adds up to $30 a month!
  • A $5 weekly trip to the fast food joint could total $20 per month. Think of how much healthier it would be to save that money!
  • Admit it. Just how much do you spend on clothes or shoes each month? Could you cut back just $25? $10? $5?
  • Do you really read all those magazines? Put that money into something longer-lasting. Rent a movie rather than going to the movies. It’ll put $15 back in your pocket. And that’s not including popcorn or other snacks!
  • Skip the happy hour for the happier life! Those $8 martinis add up. How much can you cut from your beverage bill… and add to your savings stash?
  • Just a few less minutes on the phone could save you hundreds on phone bills.

Start today

Those are just a few ideas to get you started. There are plenty of other simple things you can do today to help improve your future tomorrow. And as you can already see, contributing just a little bit more to your retirement plan now could add up to a lot later. To learn more about how you can make the most of your retirement savings contact your ING representative.

A $3 latte each day of the week adds up to $90 each month.



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