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Savings For Retirement

Nation-wide, most retirees will need approximately half a million to three-quarters of a million dollars saved by the time they retire in order to live comfortably for the rest of their lives. Three in ten Americans think that their best chance to end up with at least half a million dollars is to win a lottery or sweepstakes.

However, the fact is that one out of every 383 workers becomes a millionaire every year by doing two things; spending less than they earn and consistently investing money in an appropriate savings and investment plan. The table below illustrates, at various ages, the percentage of monthly salary required to be saved in order to accumulate half a million dollars by the age of 65.

The trick is to start early and invest consistently!

 

Age Years to Retirement Personal Contribution % Matching Contribution % Total Accumulations
25 40 2% 2% $500,020
30 35 4% 3.5% $593,668
35 30 7% 4% $549,641
40 25 13% 4% $523,775
45 20 24% 4% $512,149
50 15 45% 4% $503,280
55 10 95% 4% $509,140

Table assumes beginning salary $30,000, interest rate on savings 8% and annual salary increases 3%

The BYU Matching Program provides each of us with a wonderful opportunity to reach our retirement goals. As an investment in your future, consider using part of your September 1st salary increase to increase your contribution to the savings plans. If you are not currently participating in the Matching Program – START TODAY!

“A Part Of All You Earn Is Yours To Keep,” George S. Clayson 1926

Please contact the Benefits Office for assistance, (801)422-4716.

Updated by the HRS Web Team, Brigham Young University, Provo, UT 84602 - Copyright 2008. All Rights Reserved.