Save for Retirement – Take Action NowOctober 8, 2014
In 2013, U.S. Congress enacted, National Save for Retirement Week and designated the third week of October to raise public awareness on the importance of saving for retirement and the various retirement vehicles available to small business owners and other entities. At AXA, we support this initiative as it has become increasingly important to have a retirement savings plan available to supplement Social Security income.
As a result of the Great Recession, many Americans have started saving more and are beginning to develop a realistic understanding that they must take action if they are to achieve their retirement goals. The 2014 Retirement Confidence Survey (RCS) finds that confidence in having enough money to live comfortably through retirement has increased for both workers and current retirees in 2014 and that this boost in confidence can be attributed to active retirement plan participation.
Benefits of Getting Started
If you are a small business owner but have yet to make retirement provisions for you and/or your employees, it’s time to move it off the back burner. Here are just a few sound reasons to begin saving for your retirement future today:
Tax Advantages – Tax savings incentives have created several new opportunities to help you put away money for retirement while deferring on taxes. If your firm qualifies, a tax credit may be available and can help defray the cost of installing and administering a retirement plan.
Compounding Interest – When you save and invest, compounding interest works in your favor, helping you to build the savings you need for future financial goals. But to maximize the benefit of compounding interest you must get an early start. The sooner you begin planning and saving, the more your money will grow. Procrastination can be the difference between financial success and financial failure. Here’s an example, if we assume you have $75 a month to invest at 6% compound interest. Here, waiting 20 years will cost you over $100,000 of investment returns. Regardless of your age, the power of compound earnings can potentially make even a small investment today worth more by retirement. In short, delay makes it harder and harder to build what you want.
Account Consolidation – For individuals with multiple retirement accounts from multiple jobs, you can now consolidate all your retirement dollars into one plan. If you have multiple accounts talk to a financial professional to see if consolidation makes sense.
Attract and Retain Talent – Offering retirement products as part of your enhanced benefits package is a great way to attract and retain potential employees in today’s competitive marketplace. Not only does your plan secure your future, it may be the primary way your employees can secure theirs.
The sooner you start saving for retirement, the more you’ll have when the day comes. Start your retirement planning now and let your money work for you! Call an AXA Equitable Retirement Program Specialist at 800-523-1125 to learn more about our retirement solution offerings. Or, visit axa2plan.com to schedule a retirement planning consultation.
About AXA Equitable
AXA Equitable Life insurance Company has been helping members of associations plan for an independent retirement for over 45 years. AXA Equitable has been an AIA-endorsed provider of retirement solutions since 1991 and is here to deliver a comprehensive “bundled” service that helps minimize the time needed to establish and manage your retirement plan.
* This article was contributed by Santo LoPorto, Senior Director at AXA, an NSBA corporate partner.
Withdrawals from tax advantaged retirement plans are subject to ordinary income tax treatment and if taken prior to age 59 ½ may also be subject to an additional 10% federal income penalty. AXA Equitable Life Insurance Company (NY, NY) does not provide legal or tax advice.
GE-95335 (06/14) (Exp. 06/16)