Saving for Retirement Early
Can Pay Off 

With so many daily expenses to worry about, saving as much as you can for retirement might not be top of mind. Having a financial strategy for your future self, though, can save you a lot of stress in the long run. In fact, 42% of people aged 25—34 have estimated how much money they would need in retirement.¹ Here are some reasons planning ahead can pay off:

The earlier you start saving, the better.
Even if you feel like you don’t have a dollar to spare, increasing your contributions to your retirement plan can help your savings over time. And if your company offers an employer match, take advantage of it. Raises or bonuses can also mean more money to add to your retirement savings. 

Your money can grow over time.
The earlier you start saving, the less you’ll need to contribute over time. An example: A 25-year-old with no retirement savings who earns $35,000 and contributes six percent into a retirement plan at work could have $335,469 at age 65, assuming a six-percent annual rate of return. (And that doesn’t include raises, increased contributions, or possible employer matching contributions.) If that same person waits until age 35 to begin saving, the same contributions will only grow to $171,370.²

You can save for retirement while paying down debt. 
Saving for future goals, like retirement, doesn’t need to be put on pause because of debt like student loans or a mortgage. You can do both, in tandem, because saving in even small increments is beneficial. Tax-deferred compounding means the investment earnings in your retirement account can be reinvested to create even more potential earnings. And the more time your money has to grow, the greater the impact tax-deferred compounding may have on your financial future. 

If you have questions about building a financially secure future, please contact your local Mutual of America representative.

¹ https://www.ebri.org/docs/default-source/rcs/2021-rcs/rcs_21-fs-4_age.pdf?sfvrsn=69d83a2f_4

² This hypothetical example is for illustrative purposes only and does not represent any actual investment performance, price or yield. Investment returns are not guaranteed. Your actual return may vary significantly from that shown, and the total amounts saved in this example may or may not be sufficient for your retirement needs.