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It's easy to find reasons not to start saving now. You may think you're too young or it's too late. Or that it's going to be too hard to reach your goal. But don't ignore how much time can help.
As the chart below shows, a little money saved now may be worth more than a lot of money saved later. Waiting even one year to start or increase your contribution can cost you a lot of money in the long run. Setting aside even a little each month can help you reach your goal.
Time and Compounding Can Help Make a Difference
| Age |
Retirement plan
balance at age 65 |
Cost of
waiting one year |
| 25 |
$383,393 |
|
| 26 |
$359,354 |
$24,039 |
| 35 |
$195,851 |
|
| 36 |
$182,428 |
$13,423 |
| 45 |
$91,129 |
|
| 46 |
$83,634 |
$7,495 |
This is a hypothetical illustration based on contributing $200/month at an 6% rate of return and retirement plan balance at age 65. It is not indicative of any particular investment or performance, and does not reflect any taxes that may be due upon distribution, or any fees associated with investing. If shown, these amounts would be lower. Investments are subject to market fluctuations, and upon redemption, may be worth more or less than the original cost.
While having time on your side is helpful, it's never too late to get started. Certain plans allow participants who may not have contributed as much as they would like in the past to make additional contributions to their account.
What are you doing after work?
Take control of your financial future! Contact your Lincoln Financial Group professional today!
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