Just 1% More Can Make A Big Difference
Often it’s the little things in life that can make the biggest difference. That’s true when it comes to saving for retirement. Putting just 1% more into a tax-advantaged retirement account like a 401(k), 403(b), or traditional IRA could make a noticeable difference in your lifestyle in retirement.
“The retirement savings mountain might appear imposing from a distance, but the climb isn’t as steep as it looks,” says Jeanne Thompson, senior vice president of retirement insights at Fidelity. “Small steps can turn into big strides.”
While 1% is a small percentage of your annual earnings, after 20 or 30 years it can make a big difference in your account balance when you retire. That’s because the longer you give your money a chance to grow, the better. And it works no matter how old you are—or how far off retirement is.