Will you have enough money for retirement? According to a recent survey,* 57% of people reported that the total value of their retirement funds and investments was less than $25,000.
This included 28% who had less than $1,000 accumulated for retirement.
Life Gets in the Way
Investing for retirement can take a backseat when you’re busy raising a family, maintaining a home, paying off your own student loans and investing for your child’s college education. But if you keep putting off investing for retirement, you risk not having the funds you’ll need.
A Little More Can Do a Lot
Even small increases in the amount you invest for retirement can add up significantly over time. And the sooner you can start investing more, the better. Why? Because your retirement investments will have more time to potentially benefit from the power of compounding.
Spend Less to Invest More
Cutting back on your spending can free up more money for you to set aside for retirement. Track your day-to-day spending and look at your fixed expenses to see if you can find more affordable alternatives.
* 2015 Retirement Confidence Survey, Employee Benefit Research Institute and Greenwald & Associates
Boosting Your Balance
Increasing the amount you contribute each month to your retirement plan or individual retirement account could mean more money available for your retirement years.
An Extra $100 A Month Grows To:
After 10 Years After 20 Years After 30 Years
$16,388 $46,204 $100,452
This is a hypothetical example used for illustrative purposes only. It is not representative of any particular investment vehicle and does not include any investment fees and expenses. It assumes a 6% average annual total return compounding monthly. Your investment results will be different. Tax-deferred amounts accumulated in a retirement plan are taxable upon withdrawal, unless they represent qualified Roth distributions.
For more information regarding the benefits of your retirement plan, please contact your Human Resources Department or access your account online.
The content of this material is for informational purposes only and intends solely to serve as a guide and additional tool in helping you plan for retirement. Banco Popular de Puerto Rico, its affiliate or subsidiaries do not engage in the offering of tax, legal or accounting advice. Please consults with an appropriately licensed legal, accounting or tax professional for any necessary guidance. The investments products offered through Banco Popular’s retirement plans, including any proceeds generated, are not insured by the FDIC, are not deposits or obligations of or guaranteed by Banco Popular de Puerto its subsidiaries and/or affiliates. Investment products involve risks, including the possible loss of the invested principal. Please request a prospectus and it carefully before investing.