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Simple saving

Make sound decisions today for a more secure tomorrow

A workplace retirement plan that allows you to contribute through payroll deduction is a convenient and powerful way to save. Take advantage of the many benefits to saving in your plan:  

  • It’s easy and consistent with automatic savings through payroll deductions. 
  • It lowers your taxable income because you can save pre-tax.
  • Your savings, plus the interest you earn, grow tax deferred. Time is on your side because you’re earning interest on your interest.
  • Your employer may offer a company match, which means they contribute money to your retirement account based on your own contribution, up to a certain percent. Make sure to take advantage of the match if it’s available. 

Start with any amount and work your way up

Financial experts agree that you need to save 10 to 15 percent of your annual income through your working years to be able to afford the 70 percent or more of pre-retirement income that you will need to cover expenses in retirement.

If that seems like a lot, you can start small and build up from there. Increasing just 1 percent per year, can make a big impact.  


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The power of 1 percent

Getting started with your retirement savings is important. While the goal is to save 10 to 15 percent, it’s perfectly fine to start lower and commit to increasing each year until you reach that amount. Over the long term, increases of just 1 percent annually can significantly boost your retirement savings. The example below shows two savers, and how increasing by 1 percent each year helped the “Step-up saver” have significantly more savings. 

Employee population gender demographics A pie chart showing that the split is 72 percent female and 28 percent male. Step-up Saver Level Saver $460,386 more at age 65 $857,469 at age 65 $397,083 at age 65 30 35 40 45 50 55 60 65 Employee population gender demographics A pie chart showing that the split is 72 percent female and 28 percent male. Step-up Saver Level Saver 30 35 40 45 50 55 60 65 $460,386 more at age 65 $857,469 at age 65 $397,083 at age 65

Assumptions: Level saver contributes 6% each year from age 30 to age 65. Step-Up Saver starts at 6% and increases 1% each year until a contribution rate of 15% is achieved. Step-Up Saver continues at 15% until age 65. Graph assumes $30,000 salary adjusted for 3% annual inflation and a 7% annual investment return. Investments will fluctuate and may be worth more or less than originally invested. This is a hypothetical example for illustrative purposes only. Not specific to any plan or investment.

Use the Retirement Income Projection calculator to determine how much you need to save

People are living longer, which means you could be retired for 20, 30, even 40 years. The Retirement Income Projection calculator helps you see if you’re on track and what you need to save to reach your goals. Simply log in to your account and click on “Personalize” within the Retirement Income section. You can adjust contribution rates, your desired retirement age and other factors to see what it takes to reach your goals. 

Watch this video to learn more about saving: How much should I save?

Consider consolidating accounts with a rollover  

If you have retirement accounts with former employers, you may want to consider a rollover of those accounts into your current plan, if your plan allows.

Protect your loved ones — update your beneficiary designation

One of the most important retirement planning details is often overlooked — designating your beneficiaries and keeping them up to date. It’s crucial to keep this updated because your designation takes precedent over who is named in your will.  

Depending on your plan’s procedures, you can either update your beneficiary information directly at securian.com/retirement via a beneficiary designation form or through your HR portal.

Inflation rates impact spending and saving 

Inflation — an increase in the price of goods and the fall in purchasing value of money — impacts not only everyday spending but also retirement savings. You need to consider that inflation will affect how much your retirement dollars will be worth in the future.  

The annual inflation rate in the United States was recently the highest it has been since 1982.2 Higher inflation generally means you need to save more to have sufficient income in retirement.   

Lean more about inflation and how to better understand sticker shock. 

Employee population gender demographics A pie chart showing that the split is 72 percent female and 28 percent male. 3.0 1.7 1.5 0.8 0.7 2.1 2.1 1.9 2.3 1.4 6.8 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Employee population gender demographics A pie chart showing that the split is 72 percent female and 28 percent male. 3.0 1.7 1.5 0.8 0.7 2.1 2.1 1.9 2.3 1.4 6.8 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Ready to start saving?

If you aren’t already enrolled, now is a great time to start. Our award-winning1 enrollment experience gets you started in just a few clicks. Simply set up an account and then log in to enroll.

(For some plans, you may need to enroll through your Human Resources portal or a paper form. Please check with your HR office.) 


Enroll now

This information is a general discussion of the relevant federal tax laws provided to promote ideas that may benefit a taxpayer. It is not intended for, nor can it be used by any taxpayer for the purpose of avoiding federal tax penalties. Taxpayers should seek the advice of their own advisors regarding any tax and legal issues specific to their situation.

1. DALBAR state of the industry: Online Enrollment, 2021.
2. U.S. Inflation Calculator, 2022.

DOFU 11-2022

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