The Cost of

Waiting to Save

Long-term goals like retirement can seem far off when you’re in your 20s and early 30s, especially if you’re juggling competing demands on your money, such as paying down school loans or setting aside money for vacation. Yet, delaying saving for retirement, even by five or ten years, can be costly in the long run.

The reason is simple: making up for lost time isn’t easy. The hypothetical illustration below highlights how the earlier you begin contributing to your employer-sponsored retirement plan, the more time your savings have to grow, and the less you may have to play catch-up just to reach your retirement savings target. For example, a 25-year-old with an annual salary of $40,000 could contribute about half the amount of money each year ($2,400), compared to a 35-year-old ($4,696) earning the same salary, and still save approximately the same amount by age 65, assuming the same rate of return.

If you started saving for retirement early through regular contributions, that’s great, keep building your nest egg! And if you didn’t, resolve to take action now. To learn more, call your local Mutual of America Regional Office representative today.

This hypothetical example is for illustrative purposes only and does not represent any actual investment performance, price or yield. This illustration assumes an annual salary of $40,000, a beginning balance of $0 and an annual rate of return of 6%. 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. You should consult your attorney, accountant, tax or financial adviser with regard to your individual situation.

Better your tomorrow.

Contact your Mutual of America representative today.

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 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.