Help PLANNING FOR YOUR RETIREMENT Why choose a Group Savings Plan? What are my responsibilities? How will I pay for my retirement? When should I start saving? How does this impact my taxes? What are the contribution limits? TOOLS BUILDING YOUR INVESTMENT PORTFOLIO YOUR FORMS AND DOWNLOADS LEAVING YOUR PLAN CONTACT US	When Should I Start Saving? It's important to start now, no matter what your age. The power of compound interest (earning interest on your interest) means the longer you save in a Group Savings Plan, the more money you make. Based on deposits of $1,000 per year, made at the beginning of each year, and an 8% interest rate compounded annually, the chart below shows that waiting even a short time can cost you thousands of dollars. Start age Accumulated value at age 65 Accumulated value if savings delayed one year Cost of one year delay* 25 $279,781 $258,057 $21,724 35 $122,346 $112,283 $10,063 45 $49,423 $44,762 $4,661 To further demonstrate the power of compound interest and starting early, compare two people, Terry and Chris: Terry starts saving at age 25, contributing $1,000 a year until she's 34. Chris starts saving at 35, putting aside the same $1,000 a year for 30 years. Terry Chris Assumptions Years Contributing 10 30 Deposits of $1,000 made at the beginning of the year, compounded annually, at an 8% interest rate Annual Deposit $1,000 $1,000 Total Deposits $10,000 $30,000 Total Accumalated Value at age 65* $157,453 $122,346 Although Terry only invested one-third of what Chris invested, the combination of compound interest and starting early enabled her to save more money! Why choose a Group Savings Plan? How will I pay for my retirement? When should I start saving? How does this impact my taxes? What are the contribution limits?