Employer Update

Many employees are seeing a bump in their paychecks this summer. As an employer, you can help workers create a more comfortable retirement by encouraging them to “save the raise”—or at least a fraction of it—in their defined-contribution retirement accounts.

When employees choose to pay themselves first and prioritize their savings, they’re increasing the likelihood of having higher income in retirement. Savvy savers set aside funds—even if a modest amount—for the future just as they do for their other monthly living expenses.

1. The Paycheck Calculator can help employees determine how saving a little more before taxes will affect their paychecks. Taxes are deferred on both contributions and earnings, allowing them to pay less in taxes now.
2. The Savings Boost Calculator makes it easy for employees to understand the impact that increasing their savings now will have on their financial resources at retirement age.
3. Giving up a few everyday items can help employees save. The Small Change, Big Savings Calculator shows how cutting back can add up over time.
4. Members should start saving early for the future. Point them to the Cost of Delay Calculator.