Benefits professionals struggle constantly to convince employees that they need to start saving for retirement. For many workers, retirement is so distant and abstract that it’s easy to put off planning for it.
Snap them back to reality by helping them figure out exactly how much they need to sock away to pay for their needs once they stop working.
Walk employees through this savings calculation the next time you talk up your 401(k) or 403(b) plan. Better yet, have employees do the math themselves. Chance are they’ll be more motivated to start saving in earnest.
Hello, hypothetical pre-retiree!
Let’s start with some assumptions, the biggest being that you live comfortably on what you now earn, and that you will be content with that standard of living when you retire.
We’ll assume that you’re 50 years old and plan to retire in 15 years, at age 65. For simplicity’s sake, you take home a nice, round $50,000 per year.
This retir...(register to read more)