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					Saving for
Retirement

  Why is it important to start
  saving for retirement early?
When saving for retirement,
 it's really important to start
 saving as soon as possible.
    The sooner you set up a
savings plan, the more you'll
       have at retirement.



          According to InvestorGuide.com
• According to the NJ Department of
Health Services, the average life
expectancy for a male is 75.5 years.


• With the average retirement age at
around 67, it is necessary for a retiree
to comfortably support himself for at
least 8 years. According to the Social Security Administration
If you start your career right
out of college, you will enter
  the workforce around 22.
   If you start saving for
   retirement as soon as
 possible that will give you
around 45 years to build up
       a nice nest egg.
 If you start out with a
salary of $45,000, in 45
years you will be making
approximately $170,000.
  Based on an average inflation rate of 3%
annually, according to the US Census Bureau
      According to
 Investopedia.com, a
retired individual may
need as much as 70%
 of his pre-retirement
     income to live
      comfortably.
            Amount of money you will have saved
                 at retirement if you wait.


          $1,200,000.00
          $1,000,000.00
Savings




            $800,000.00
            $600,000.00
            $400,000.00
            $200,000.00
                  $0.00
                          0




                               15




                                         25
                                Years


    Based on an annual contribution of $5000 into a
    tax-deferred investment plan with 6% interest.
             How much you will recieve annually
             after retirement, based on how long
                  you wait to start investing.

          200000
          150000
Annuity




          100000
           50000
               0
                   0




                             15




                                          25
                           Years Waited


Based on an annual pre-retirement investment
   of $5000 and collecting for 8 years past
                retirement.
• If you start saving immediately, you
can live your post-retirement years
close to 100% of your pre-retirement
income.


• If you wait 10 years, it drops to 52.8%.

• If you wait 15 years, it drops to 37.4%.

• If you wait 20 years, it drops to 26%.

• If you wait 25 years, it drops to 17.4%.
     Therefore it is very
 important to start saving
 for retirement as soon as
possible, to ensure that you
    will be able to retire
         comfortably.

				
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posted:7/22/2012
language:English
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