Think It's Too Late to Save?

Think again! Taking full advantage of an employer match can help make up for lost time.

If you're close to retirement and thought you'd have more saved for your retirement by now, you're not alone. One study showed that 47% of American workers have less than $25,000 in savings and investments (excluding the value of their primary home and any defined benefit plans).*

But here's one thing you can do to help reduce your savings shortage: take full advantage of an employer match, if your company-sponsored retirement plan offers one. After all, if you're contributing to your plan but not maxing out on the match, then you're basically passing up on additional tax-deferred contributions that your employer would put directly into your account.

In the example below, assume you have a beginning balance of $25,000, you're 50 years old, earn $50,000 a year, and your employer offers a match of 50% of your contributions up to 6% of your annual pay. By contributing at least 6% of your salary as a starting point, you can get the full match to help provide a substantial boost to your retirement savings by age 65. Furthermore, increasing your contribution rate even more may have a significant impact on the amount of your total savings.

Bottom line: it's never too late to save more. And, if you're age 50 or older, you may also be able to boost your retirement savings with "catch-up" contributions, if your employer permits them. If you have questions or want to discuss your retirement savings goals, call your Mutual of America Regional Office representative today.

*EBRI/Greenwald & Associates, "The 2017 Retirement Confidence Survey," March 2017

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This hypothetical example is for illustrative purposes only and does not represent any actual investment performance, price or yield. This illustration assumes a beginning balance of $25,000, includes an employer match of 50% of contributions up to 6% of salary, assumes no increase in earnings and has an annual rate of return of 6%. Investment returns are not guaranteed, and your actual return may vary significantly from that shown.


Before investing, you should carefully consider the investment objectives, risks, charges and expenses of the variable annuity contract and the underlying investment funds. This and other information is contained in the contract prospectus or brochure and underlying funds prospectuses and summary prospectuses. Please read the contract prospectus or brochure and underlying fund prospectuses and summary prospectuses carefully before investing. The contract prospectus or brochure and underlying fund prospectuses and summary prospectuses can be obtained by mail or by calling 1-800-468-3785.

Mutual of America's group and individual retirement products are variable annuity contracts and are suitable for long-term investing, particularly for retirement savings. The value of a variable annuity contract will fluctuate depending on the performance of the Separate Account investment funds you choose. Upon redemption, you could receive more or less than the principal amount invested. A variable annuity contract provides no additional tax-deferred treatment of benefits beyond the treatment provided to any qualified retirement plan or IRA by applicable tax law. You should carefully consider a variable annuity contract's other features before making a decision.




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