Start taking steps toward a financially secure future today
Will your retirement outlast your savings?
Whether you’re 25 or 55, it is vital to seriously consider a proper saving plan to allow for a comfortable and financially secure life after retirement. We understand it can be tempting to put saving for retirement on the back burner when you have other top-of-mind financial concerns like paying down existing debt, lack of emergency savings and inability to meet monthly expenses. But the longer you put off planning for your future, the farther you will fall behind. It’s never too late to start!
An important step to making the right changes to your retirement plan is knowing what obstacles you are facing. Watch this video highlighting the latest findings on what people are saying their top obstacles are for retirement savings.
We are living longer so does that mean we need to work longer?
Not necessarily. You can start saving early.
One of the biggest impacts on your retirement savings is when you start. Even if you are not able to contribute the recommended amount each year (10-15% pre-tax salary), starting at a young age will result in greater savings from time and compounding. Check out this example of the exponential effect time and compound interest has on your retirement savings.
THE POWER OF COMPOUND INTEREST
The earlier a person starts saving for retirement, the more time that money has to grow.
 |
 |
 |
 |
|
|---|---|---|---|---|
| Age of Investment |
25-65 years |
35-65 years |
25-35 years |
25-65 years |
| Amount Invested |
$200/month |
$200/month |
$200/month |
$200/month |
| Earning % |
6.25% |
6.25% |
6.25% |
2.0% (savings) |
| Principal Invested | $96,000 | $72,000 | $24,000 | $96,000 |
| Total Accumulations |  |
 |
 |
 |
The above example is for illustrative purposes only and not indicative of any investment. Source: J.P. Morgan Asset Management, Retirement Insights, Guide to Retirement, 2022.
To be financially ready to retire, employees should SAVE ABOUT 11 TIMES their pre-retirement salary by age 65.*
Learn and plan your retirement
We at USI Consulting Group (USICG) have a robust library of retirement and investment resources to help educate and assist retirement plan participants in managing their retirement accounts and setting a plan to reach their post-work life goals.
Make sure you are participating in your employer-sponsored retirement plan to start saving for your future!
Why should employers care?
A key component of achieving financial wellness in the workplace is making sure your employees are financially prepared to retire. Employers have begun to focus on employee financial wellness to better understand the barriers employees face in saving for retirement. If employees aren’t able to tackle their short-term goals (i.e., pay down debt, establish emergency savings, afford healthcare), they won’t be able to start to think about retirement.
Your employees may not be speaking up and requesting help, but they need a financial well-being program that does more than offer online retirement income calculators or sessions with investment specialists. Employees need a financial well-being program that helps them improve their ability to live within a budget, reduce debt and save for the future.
Helping employees improve their retirement readiness can also help mitigate the projected economic costs to your business. Our recent article, Is Delayed Retirement Impacting Your Bottom Line?, reports that employers spend more than $50,000 per employee each year an employee delays retirement. A workforce that is financially unprepared to retire can impact businesses in a wide variety of ways, including potentially higher labor costs, increased health care premiums and lower productivity due to financial stress.
Source: Lincoln Financial Group’s 2020 Consumer Sentiment Tracker Study
How USI Consulting Group can help employers
USI Consulting Group has been helping employers enable their workforces to successfully plan and invest for retirement for over 45 years. To learn more about USICG’s solutions and how we can help you improve your employees’ financial security and retirement readiness, contact your local USICG representative, visit our Contact Us page, or reach out to us directly at information@usicg.com
* Source: T. Rowe Price, February 2023
This information is provided solely for educational purposes and is not to be construed as investment, legal or tax advice. Prior to acting on this information, we recommend that you seek independent advice specific to your situation from a qualified investment/legal/tax professional. | 1023.S1012.0077