Save For Your Retirement

Add $50,000, $100,000 or even $500,000 to Your Retirement Savings

Your personal savings are one of the four building blocks of a financially secure retirement along with your company's retirement plan, your IRA and Social Security. The amounts you will receive from those last three sources are somewhat out of your control. Social Security benefits are based on your wages, your IRA contributions are limited and your employer's retirement plan may limit what you can contribute. However, you have complete control over your personal savings.

Determining exactly how much you need to save for retirement can be complicated. To do the perfect calculation, you need to know your level of expenses during retirement, your future tax rates, the future returns on your assets and, ultimately, how long you are going to live. With all these uncertainties, the thought of doing the calculation can be daunting.

Having More Is Better Than Having Less
Even without an exact calculation, it is probably safe to assume that you want to accumulate more funds so you can enjoy the type of retirement lifestyle you want. Here is one simple idea that may give you the motivation to do something you know you should be doing—saving more.

Saving Early and Often Is Under Your Control
The keys to accumulating a larger retirement nest egg are to start early, to save often and to earn competitive returns on your funds. If you are 35 and plan to retire at age 65 (30 years to save), you can accumulate an additional $250,000 by saving $300 per month (assuming an earnings rate of 5%). Use the calculator to determine how much you need to save.

Save to Increase Your Retirement Nest Egg
Amount you want to save before you retire	$
Interest rate you expect to earn	%
How many years until retirement
Monthly savings needed	$

Interest is compounded monthly. This calculator is to be used for estimation purposes only. Tower is not responsible for its accuracy and the results are not guaranteed.

Start Your Automatic Savings Today
There's no easier way to save than with an automatic savings plan. Take advantage of Tower's free direct deposit service—and have all or a portion of your paychecks or other recurring checks deposited safely and on time. Once you’ve set up direct deposit, allocating direct deposits into a Tower Club account is the smart way to manage your savings. To set up direct deposit allocation, login to Home Banking, go to Online Forms and submit the Direct Deposit Allocation Request form. If you're not a Home Banking user, sign up easily and securely today.

Tower Financial Services can help you find the right answers for your financial planning needs. Schedule an appointment for a no-cost consultation.

The information in this article is meant to be educational in nature and does not pertain specifically to any Tower product or service. Each person must consider his or her objectives, risk tolerances and level of comfort when making financial decisions. In many cases, seeking the advice of competent professional advisors can ensure the decisions you make will be best suited for your situation.