If your employer offers a match, try to contribute at least enough to earn all the matching dollars that your employer offers - it's free money that goes directly into your retirement account!
2019 CONTRIBUTION LIMIT
In 2019, the most you can contribute to a 401(k) is $19,000; that limit increases to $25,000 if you’re 50 or older. That limit dictates how much you can contribute, but it doesn’t tell you how much you should contribute.¹
If you contributed $19,000 to a 401(k) each year for 35 years and got a 6% average annual return, you’d have around $2.4 million. If your employer matched contributions, that would add to the total.¹
However, not everyone can commit to $19,000 a year. That’s why your 401(k) contribution amount should be guided by your unique financial situation and retirement savings goal.
DETERMINING YOUR CONTRIBUTION AMOUNT
The ProNvest Retirement Planner is an online questionnaire designed to determine how much money you’ll need to retire, where you’re at today and what steps you can take to reach your goals.
Our retirement counselors are available to take you through the planner and to look at ways to help you reach your retirement goal, like increasing your contribution amount so more or your money has more time to grow with the power of compounding interest.
Most experts recommend saving 10% to 15% of your income, but you can review with one of our retirement counselors to determine what contribution amount works best for you in achieving your retirement goals.¹
INCREASING YOUR CONTRIBUTION
Increasing your contribution each year, even a little, can help you reach your retirement goals. You might be surprised at the difference even a small increase can make.
You can determine if you have the means to contribute more by having your annual retirement planning session (or letting ProNvest know when you experience any big financial or lifestyle changes). You may find you have more money you could be putting towards your contribution or you may decide to cut back on spending in a certain area to increase your contribution amount this year.
PLAN YOUR ANNUAL RETIREMENT PLANNING SESSION
Have you had your annual retirement planning session with ProNvest yet? Our retirement counselors are available to help you determine ways you can save more to help you reach your retirement goals. Take the time to take care of your future-self today.