Never too early, or late, to start saving

Last updated: 7/20/2009 12:00:37 PM

Two-thirds of American workers say they are confident they will have enough money to retire comfortably, yet…

Only 49% of families have a retirement account.
More than half of those age 55 or older have less than $50,000 saved for retirement.
Only 42% of workers have completed a retirement needs calculation.

What gives? Not only are Americans seemingly unprepared for retirement, most don’t even know it. Social Security’s future is uncertain, private sector pension plans are disappearing, life spans are increasing, and health care costs are rising. Working longer and living on less will be a harsh reality for many.

The good news
As a public school employee, your employer contributes to the Wisconsin Retirement System on your behalf, covering a portion of your retirement needs. But that’s not all.

As a public school employee you are eligible to open a tax-sheltered annuity (TSA) retirement savings account. A TSA is a great opportunity to build additional savings with before- and/or after-tax contributions conveniently deducted from your paycheck. A TSA can help you achieve your retirement dreams, regardless of your age.

Early career
Start today. The longer your time horizon before retirement, the longer your money can work for you. You can start a TSA with as little as $200 per year. When selecting a provider, compare fees. Even one percentage point can make a big difference in your account balance at retirement.

Mid-career
Take time to calculate your retirement income needs. A new online calculator will identify shortfalls and how much you need to save to make up the difference.

Work toward contributing the maximum allowed. Include after-tax (Roth) contributions, if available in your district, to your TSA account to help reduce your tax liability in retirement. Please check with your employer for the availability of after-tax contributions.

WEA TSA Trust
Most public school employees in Wisconsin have access to the WEA TSA Trust—a program recognized nationally (Forbes and LA Times) for its sound management and low fees. Call one of our consultants at 1-800-279-4030 for more information.

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