Most experts will recommend you save a total of 15% of your income each year throughout your career. The more you save in your 20s, the faster your retirement savings will grow. Many of today’s young workers are realizing the importance of a retirement benefit through their employers.
We realize it’s difficult to manage living expenses, housing, and student loans while trying to save. We recommend using our Spending Plan Worksheet and start setting realistic goals for saving that work for your lifestyle.
Y employees who save a little for a long time are much better off than those who start later and save more.
Enroll In The 403(b) Savings Plan
Thousands of Y employees are voluntarily saving on their own with the Fund. There is no minimum amount required to open an account, and any Y employee can open an account at any time. You can change or stop the amount you save at any time, and there is no minimum balance to keep your account open, as long as you are working for the Y. You can save on a pre-tax basis in the Tax-Deferred Account, on an after-tax basis in the Roth Account, or both! Click here to get started.
Starting and supporting a family, purchasing a home, and paying off debt are common expenses that arise in your 30s. Even with these savings priorities, it’s important to build a foundation today for the kind of life you want in retirement. A good retirement begins with saving early and building your savings over time. With the Fund’s Savings Plan, you can save safely and securely, with the opportunity to increase your tax-deferred contributions anytime.
If you haven’t begun to save yet, now is the time you want to get more serious about it. Make sure you are saving as much as possible; try to keep to the guideline of saving 15% of your salary, which includes what your Y contributes on your behalf. Consider giving yourself a “raise” by increasing your retirement contribution whenever you get a raise at work. You can’t wait until you are 40 or 50 years of age to start saving for retirement.
Continue to keep yourself on a spending plan and check to ensure sound financial health. Tracking your spending is the best way to keep yourself in check. Be thoughtful when deciding how you spend your money. If you have a spouse, make sure you both understand what your finances look like and what that means for your lifestyle. The most important thing is to know what is coming in and what is going out. Pay off high interest rate credit cards every month. If you already have debts, make sure you are working to pay them off and avoid incurring more.
Open Or Increase Your Contribution To The 403(b) Savings Plan
At this stage in your life, your vision of retirement may still be clouded with the anticipation of additional expenses such as college tuition for your kids, wedding costs, and expenses of replacing your vehicles and repairing your home. However, it is important to keep in mind that saving for retirement is still on your to-do list.
Prioritize Saving for Retirement
Start seriously thinking about making saving for retirement a priority. We know that you have competing expenses hitting your paycheck. Prioritizing retirement savings first will help you to envision your future income goals sooner. Make retirement savings number 1 on your to-do list. You are still 15 to 25 years away from retirement, but now is the time to ramp up your savings.
Your 40s is also the time to evaluate your life plan. Do you have a will established? Do you have additional retirement plans held elsewhere? Do you have enough life, car, and home-owner’s insurance? Did you pay yourself first in retirement savings? These are the questions you need to ask yourself so you can make a plan.
Contributing to the Fund’s 403(b) Savings Plan
Thousands of Y employees are voluntarily saving on their own with the Fund. If you haven’t enrolled in the 403(b) Savings Plan, now is a great time to do so. There is no minimum amount required to open an account, and any Y employee can open an account any time. You can change or stop the amount you save any time, and there is no minimum balance to keep your account open, as long as you are working for the Y. You can save on a pre-tax basis in the Tax-Deferred Account, on an after-tax basis in the Roth Account, or both! Click here to get started.
The amount that you contribute to your retirement savings is one of the most important aspects of retirement planning, and the biggest factor in determining how much savings you will have when you retire. A great way to see if you are on track is to determine your retirement number—how much you will need in retirement income.
It’s important to check your savings status and make sure you are saving enough for your ideal retirement. Log in to your account to access the Fund’s Lifetime Income Tracker to estimate what a monthly income payment could look like in retirement.
If haven’t quite reached your goal, you can also take advantage of catch-up contributions by making additional contributions to the Fund’s 403(b) Savings Plan.
You might think you will need income in retirement that is equivalent to your salary just before you retire. However, keep in mind that in retirement, many of your expenses will change:
If you want a more detailed picture of what you should be saving, log in to your account and check out the Lifetime Income Tracker. You can estimate what a monthly income payment could look like in retirement by combining current account information with Plan provisions.
Are you on track to reach your retirement goal? There are certain things you should be doing at this time of your life.
If you are age 55 or older and planning to retire before age 65, learn more about how to Start Receiving Your Lifetime Retirement Income.
It’s time to understand how much income you’ll be receiving in retirement. Contact us to request an Annuity Estimate or log in to use our Lifetime Income Tracker.
You can also learn more here about how to Start Receiving Your Retirement Income Benefit.
*Notify your Y of your decision to retire. Review your Y’s employment handbook and personnel policies for the appropriate time to inform the Y of your decision.
We are your partners in saving and planning for retirement. Don't hesitate to contact us with any questions you may have about your account with the Fund.