YOUR RETIREMENT PLAN VARIABLES -- SMALL CHANGES MAKE A BIG DIFFERENCE

The following charts clearly show how seemingly small changes in individual variable of your retirement plan can have a large impact on the plan.

1)  What is the cost of retiring early?
                    Savings Needed to Meet Your
                   Retirement Income Goal of             Retirement Income
Retirement Age(s)     Annual                             If Contribution
You    Spouse         Savings    % of Salary             Remains







Consider carefully the full impact of retiring early.  In this chart, the only variable that changes is Retirement Age.  Look how much more you'd need to save to retire early.  If retiring early is something you're considering, that's all the more reason to put your plan in action and start saving now.  The earlier you start, the easier it is to achieve your retirement goals.

2)  What is the cost of delaying retirement savings?
                    Savings Needed to Meet Your
                   Retirement Income Goal of             Retirement Income
Starting Age(s)       Annual                             If Contribution
You    Spouse         Savings    % of Salary             Remains






The cost of delaying saving is great.  As you can see, every year you put off saving means you'll have to put away much more to reach the same retirement goals.  Time can be your greatest ally when enough is allowed to work for you.

3)  What is the impact of earning different rates of return (net of inflation)?
                    Savings Needed to Meet Your
                   Retirement Income Goal of             Retirement Income
Pre-        Post-         Annual                         If Contribution
Retirement  Retirement    Savings    % of Salary         Remains




After seeing what a difference your rate of return can mean, you may want to take a hard look at your expected rate of return to be sure it will help you achieve your retirement goals.  Remember, developing a sound investment strategy can help but there's no way to guarantee your rate of return or predict what inflation will be -- it may be higher or lower than your expectations.  All the more reason to conduct an annual check-up on your retirement plan.  If your return is greater than you were striving for, you can shoot for a greater retirement income or start making smaller contributions.
