It Doesn’t Cost as Much as You Think to Contribute
Here’s how the same paycheck might look if you increased your contributions. Adjusting your contribution percentage can affect take-home pay very little, but your long-term account balance a lot.
| Pre-tax Reductions | |||
| Qualified Plan Contribution | $336.83 (8.60%) | $415.17 (10.60%) | $493.50 (12.60%) |
| Total Deductions | $898.95 | $874.16 | $849.37 |
| Net Take-Home Pay | $2,680.89 | $2,627.34 | $2,573.80 |
| Taxes Deferred | $106.61 | $131.40 | $156.19 |
| After 10 Years | $109,852.00 | $135,399.00 | $160,946.00 |
| After 20 Years | $306,581.00 | $377,879.00 | $449,177.00 |
| After 30 Years | $658,893.00 | $812,123.00 | $965,354.00 |
Even “Good†Debt Can Derail Your Retirement
African Americans report that debt is their most significant barrier to saving. Older African Americans have more consumer debt than their younger counterparts. And even though just 1 of 5 older African Americans has student loan debt, their balances are higher than younger African Americans, possibly due to carrying their own debt combined with loans for one or more of their children. This is a phenomenon unique to African Americans and Hispanics; for whites and Asians, the burden of student loan debt shrinks with age. Middle-aged and older black parents need to find ways to spend less on college and more on retirement.
So how are you doing?
Are you contributing enough to your retirement? Visit My Retirement Outlook at https://emro.ingplans.com/emro/mro.action to identify any potential shortfalls in your retirement savings and get a better understanding of what you need to do to meet your income objectives. Other calculators and worksheets can be found at ING’s Tips and Tools site.Â