The Cost of Waiting to Save

Long-term goals like retirement can seem far off when you're in your 20s and early 30s, especially if you're juggling competing demands on your money, such as paying down school loans or setting aside money for vacation. Yet, delaying saving for retirement, even by five or ten years, can be costly in the long run.

The reason is simple: making up for lost time isn't easy. The hypothetical illustration below highlights how the earlier you begin contributing to your employer-sponsored retirement plan, the more time your savings have to grow, and the less you may have to play catch-up just to reach your retirement savings target. For example, a 25-year-old with an annual salary of $40,000 could contribute about half the amount of money each year ($2,400), compared to a 35-year-old ($4,696) earning the same salary, and still save approximately the same amount by age 65, assuming the same rate of return.

If you started saving for retirement early through regular contributions, that's great, keep building your nest egg! And if you didn't, resolve to take action now. To learn more, call your local Mutual of America Regional Office representative today.

The cost of waiting to save

This hypothetical example is for illustrative purposes only and does not represent any actual investment performance, price or yield. This illustration assumes an annual salary of $40,000, a beginning balance of $0 and an annual rate of return of 6%. Investment returns are not guaranteed. Your actual return may vary significantly from that shown, and the total amounts saved in this example may or may not be sufficient for your retirement needs. You should consult your attorney, accountant, tax or financial adviser with regard to your individual situation.


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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