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You may get benefits from your employer—like medical, dental, and vacation days. But possibly the most valuable benefit your employer can provide is a retirement plan. Your employer’s plan is an important tool to retiring with enough money to support yourself after you stop working.
Save for your future
It’s no surprise that retirement can be expensive. And many retirees will need at least 75% to 85% of what they had been earning. That’s why joining your plan as soon as you can—and regularly contributing to your account with each paycheck—can help you get on track to meet your financial goals. When you sign up:
- Money is automatically deducted from your paycheck.
- You might get matching contributions from your employer.
- Pre-tax money you save doesn’t count as taxable income. So you’ll owe less in taxes as you save.*
You’ll save more over time
The sooner you join your plan, the more money you’ll have when you retire. It’s that simple.
Don’t wait—join your plan today!
You decide how much to save
Vanguard suggests you save 12% to 15% of your salary each year for retirement. This includes any contributions your employer might make.
If you can’t save that much now, save as much as you can and increase your contribution rate by 1 percentage point each year. It’s easy to do, and you might not even notice the effect on your paycheck later.
You choose how to invest your money
When you join your employer’s retirement plan, you get to choose how to invest your money. You can choose a mix of funds on your own—or you can choose a single target-date investment, if available in your plan.
If you want to choose funds on your own, just follow these easy steps:
- Complete a short questionnaire to get your preferred asset mix.
- Review the funds offered in your plan.
- Choose funds that reflect your asset mix.
Or consider choosing a target-date investment. A target-date investment offers the simplicity of a complete portfolio. It also handles most regular maintenance for you. If the investment’s mix of stocks and bonds is thrown off by the market, it will automatically adjust to keep you on course. If you do choose a target-date option, we suggest you regularly check the asset mix of your investment to make sure it’s appropriate for your current situation.