Money Magazine recently ran an article on how much you should have in retirement savings based upon your age. The article suggested the following retirement savings amounts at certain ages in order to live a lifestyle in retirement comparable to your current lifestyle. It suggested you should have the following amounts in your retirement savings by the following age ranges:
|1.5 times your annual salary
|3 times your annual salary
|6 times your annual salary.
This makes sense if you do not have a pension but what about those who do have pensions? How much should you save on top of your pension in order to live a comparable lifestyle to your present one when you retire?
The answer may be a little frustrating without some help. Every state has different pension plans and different rules around Social Security. In an ideal world, you could simply figure out what your pension will pay you in retirement, add Social Security, and then compare that to your salary today. In reality, pensions can be confusing and planning your retirement can be overwhelming.
Here are some things that can help you think through how much you will need to save:
How much do you really need in retirement savings? It’s the answer we hate to hear: “It depends.” There are a lot of factors that go into your number. A financial professional can help you more clearly define the number that’s right for you. If you are not sure and want help, then talk to your local NEA Valuebuilder representative. At the NEA Valuebuilder Advisor-Assisted Web page [https://nea.securitybenefit.com/neavaluebuilder/advisorassisted.htm], our “representative locator” will quickly provide contact information for trained representatives who can help you with retirement planning and making difficult decisions that affect your future.
To find your representative click here. Take a look right now!
(If you have trouble with the link, copy the following web address into your browser,http://nea.securitybenefit.com/neavaluebuilder/advisorassisted.htm.)
You should carefully consider the investment objectives, risks, and charges and expenses of the mutual funds and variable annuities available under the NEA Valuebuilder Program before investing. You may obtain a prospectus that contains this and other information about the mutual funds and variable annuities by calling our National Service Center at 1-800-NEA-VALU (632-8258). You should read the prospectus carefully before investing. Investing in variable annuities and mutual funds involves risk and there is no guarantee of investment results.
The NEA Valuebuilder Program provides investment products (the “NEA Valuebuilder products”) in connection with retirement plans sponsored by school districts and other employers of NEA members and individual retirement accounts established by NEA members. Security Distributors, Inc. and certain of its affiliates (collectively “Security Benefit”) make the NEA Valuebuilder products available under this program pursuant to an agreement with NEA’s wholly-owned subsidiary, NEA’s Member Benefits Corporation (“MBC”). Security Benefit has the exclusive right to offer the NEA Valuebuilder products under the program, and MBC generally may not enter into arrangements with other providers of similar investment programs or otherwise promote to NEA members or their employers any investment products that compete with the NEA Valuebuilder products. MBC promotes the program to NEA members and their employers and provides certain services in connection with the program. Security Benefit pays an annual fee to MBC based in part on the average assets invested in the NEA Valuebuilder products under the agreement. You may wish to take into account this agreement and arrangement, including any fees paid, when considering and evaluating any communications relating to the NEA Valuebuilder products. NEA and MBC are not affiliated with Security Benefit. Neither NEA nor MBC is a registered broker-dealer. All securities brokerage services are performed exclusively by your sales representative’s broker-dealer and not by NEA or MBC.
The NEA Valuebuilder Variable Annuity TSA, Contract Form No. V6029, also includes a Fixed Account. The NEA Valuebuilder Variable Annuity TSA is distributed by Security Distributors, Inc. and is issued by Security Benefit Life Insurance Company (SBL). The NEA Valuebuilder 403(b)(7) is a Custodial Account under §403(b)(7) of the Internal Revenue Code. The NEA Valuebuilder Mutual Fund 457 is a Trust Account under §457 of the Internal Revenue Code. The NEA Valuebuilder IRA is an IRA Custodial Account under §408(a) of the Internal Revenue Code.
Annuities are long-term investments suitable for retirement.
Security Distributors, Inc. is a subsidiary of SBL and SBL is wholly owned by Security Benefit Corporation (“Security Benefit”).
Security Distributors, Inc.
 Walter Updegrave, “Retirement checklist: What to do from 35 to 55+”, Money Magazine, September 22, 2010.http://money.cnn.com/2010/09/21/retirement/retirement_checklist.moneymag/index.htm.
 Dunstan McNichol, “Teachers’ Pension Gap May Be Triple That Reported (Update1)”, Bloomberg Businessweek, April 13, 2010. http://www.businessweek.com/news/2010-04-13/teacher-pension-deficit-at-900-billion-may-be-triple-reported.html.