The Cost of Procrastination.
You may not think you need to start saving for retirement now, or even in the near future. But the cost of procrastinating may be higher than you think.
It really pays to start early.
The earlier you start to save, the less you'll need to contribute each week to help reach your goals (depending on investment performance and other factors). The chart on the right shows the amount that individuals of various ages would need to contribute each week with pre-tax contributions to their employer's retirement plan (assuming a hypothetical 8% annual return) to potentially reach $500,000 by age 65*.
When you start saving for retirement can make a big difference. If you waited just 10 years to make weekly pre-tax contributions of $35 to your retirement plan, your account balance could suffer in the long term. In the following example, the cost of waiting was $306,000.
* Examples are hypothetical and are not intended to predict or guarantee the performance of any particular investment. Actual returns and principal values will fluctuate. Distributions from your retirement program are subject to ordinary income tax and, if taken prior to age 591 /2, a 10% federal income tax penalty may apply. A 10% federal tax penalty may apply to amounts distributed from your plan which are attributed to an IRA or other qualified plan.
Before investing, you should carefully consider the investment objectives, risks, charges and expenses of the mutual funds or The Hartford's group variable annuity products and funding agreements, and their underlying funds. For fund and product prospectuses and/or a disclosure document containing this and other information, contact your financial professional or visit our website. Read them carefully.
RPS 7394
