July 1, 2021

Saving as a Recent Graduate

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An infographic detailing retirement savings advice and information for recent graduates that shows a happy young woman with a cap and diploma. The first content block includes “Retirement by the Numbers”: 42% of people age 25-34 have estimated how much income they would need each month in retirement (source: 2021 RCS Fact Sheet #4 “Age Comparisons Among Workers.”). 67 is the normal retirement age for Social Security benefits for workers born in 1960 or later (source: Social Security Administration). The second content block includes “A Financial Overview”: 25% of people between the ages of 25 and 34 have less than $10,000 in savings and investments (source: 2021 RCS Fact Sheet #4 “Age Comparisons Among Workers”). 45 million Americans over the age of 18 currently carry a federal student loan (source: U.S. Department of Education “Federal Student Loan Portfolio.”). $4,889 is the average total credit card debt among millennials (source: Experian “Millennials vs. Baby Boomers: Who Has More Credit Cards?”). The third content block includes “Why Start Saving Now?” and suggests that the sooner you begin contributing, the more time contributions and tax-deferred compounding have to help you grow your retirement account. Also, making contributions to a traditional retirement plan lowers your current taxable income, so you’ll play less income tax (note: withdrawals are subject to income tax at your ordinary income tax rate at the time of withdrawal, and if made prior to age 59 1/2, there’s a 10% federal tax penalty). The fourth content block includes a quote from Cody Habben, a Participant Account Representative for Mutual of America, that says: “If you recently finished college or graduate school, paying off debt and saving for retirement doesn’t have to be an either/or issue.” The final content block invites you to learn more by connecting with your local Mutual of America representative and visiting the Mutual of America Resource Center for helpful retirement-related articles.

3 Things
to Know

1

$19,500

 

In 2021, this is the maximum amount you can contribute to certain employer-sponsored
retirement plans.* See 2021 Contribution Limits.

 

*If you contribute to a TDA, 403(b) Thrift and/or 401(k), then generally the total amount contributed to all plans may not exceed $19,500 ($26,000, if age 50 or older). Exceptions apply to certain 403(b) plan participants and governmental 457(b) plan participants.

 

2

Asset Allocation

 

Periodically review your asset allocation—the mix of equity, fixed income and money market funds you choose in your retirement portfolio. 
By doing so, you can help ensure that your mix of investments continues to reflect your risk tolerance and long-term goals. Visit My Account.

3

50%

 

Percentage of workers who have tried to calculate how much they’ll need to live comfortably in retirement.* Do you know how much you will need?

 

*2021 RCS Fact Sheet #3 “Preparing for Retirement in America.” Figure 4. EBRI/Greenwald Research. April 2021.

Related Content

An article outlining five easy steps you can take to review and enhance your retirement savings that shows a smiling middle-aged couple in their kitchen. The steps include: 1) Revisiting your retirement roadmap, reflecting on your retirement goals and discussing your big-picture retirement vision; 2) Setting your ETA for retirement by revisiting your timeline and possibly setting aside more money each month to reach your goals; 3) Checking the gauge on your savings by visiting your Mutual of America account or using Mutual of America’s online retirement calculators to make sure you’re saving enough; 4) Running a diagnostic on your contributions to ensure you’re maximizing your retirement plan’s value, including whether you’re taking advantage of available employer-matched contributions or participating in catch-up contribution if you’re 50 or older; 5) Fine tuning your investments by reviewing your asset allocation to make sure the mix of funds still aligns with your retirement goals. If you’d like to learn more about your retirement plan, contacting your local Mutual of America representative is encouraged.
Midyear Savings Checkup
 An article offering three tips to consider when navigating market volatility that shows a man and woman with their young child on the couch. The tips include: 1) Making a plan to ensure you have a diversified portfolio spread across stocks, bonds and cash, and then reviewing the plan at least once each year; 2) Focusing on the long term and not trying to predict the market or shifting your asset allocations; 3) Keeping up your contributions during periods of volatility to enable your retirement savings to grow over time. To learn more about saving for the future, contacting your local Mutual of America representative is encouraged.
Market Volatility and Your Retirement Account
 A woman working outside on her laptop
Basics of Enrolling in a Retirement Plan

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You should consider the investment objectives, risks, and charges and expenses of the investment funds and, if applicable, the variable annuity contract, carefully before investing. This and other information is contained in the funds’ prospectuses and summary prospectuses and the contract prospectus or brochure, if applicable, which can be obtained by calling 800.468.3785 or visiting mutualofamerica.com. Read them carefully before investing.

 

The articles and opinions in this publication are for general information only and are not intended to provide specific advice or recommendations for any individual. Consult your attorney, accountant or financial or tax adviser with regard to your individual situation.