Pension Sense blog | December 11, 2019
It’s the holiday season, and right now you’re probably worried about finding the right gift for everyone on your list. We understand the feeling! But while you’re fulfilling everyone else’s holiday wishes, consider giving yourself a more secure retirement by starting or increasing your contribution to your supplemental savings account.
Albert Einstein once called compound interest the eighth wonder of the world. We couldn’t agree more. The earlier you set aside money toward your retirement, the greater the benefit of compound interest over time. It’s never too late to save a little more – small steps today help build a more secure retirement for the future.
Let’s say you start putting away $100 per month in a 403(b) or 457(b) plan through CalSTRS Pension2. Assuming a hypothetical yield of 5%, the table below shows the projected value of your investments by age 65 based on the age in which you started investing.
|Age Starting Savings||Account Value at Age 65*|
*Investing involves market risk, including the possible loss of your contributions.
Compound interest needs time to work its magic. Pension2 offers a variety of investment plans to meet your retirement savings goals at any point in your career. Use our savings calculator to see how the power of time and money can make your savings grow.
There is no better time than the present to check in on your retirement goals. From all of us at CalSTRS, we wish you a very happy holiday season and a prosperous retirement.