Should I start saving now?
The short answer is yes. Time is your ally early in your career. Saving for retirement may be far from your mind right now, but it's essential to ensuring you have enough money to retire comfortably. Due to compound interest, saving earlier in your career is far more valuable than saving later.
Do you want some help?
Did you know that working with a professional early on can help you reach short-term financial goals and set you on the path to financial wellness in the longer-term? Figuring out which funds to invest in, how much to save and how much money you'll need in retirement is no easy task. Through the ADP TotalSource Retirement Savings Plan, you have access to investment advisory services through Voya Retirement Advisors (VRA), powered by Edelman Financial Engines.1
Online advice – web-based service lets you get personalized retirement income forecasts*, risk assessments, specific savings and fund recommendations at no additional cost.
Professional management – members receive a personalized retirement savings and investment strategy, as well as ongoing monitoring and management of their account by a VRA professional. Delivery of this service does require a monthly fee.
*IMPORTANT: Forecasts, projected outcomes or other information generated regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. In addition, results may vary each time a forecast is generated for you.
While it’s never too late to start saving, just look at how much more you could have by starting early and saving $200 a month.
If you start saving $200 a month for:
How did we come up with these numbers?
They’re based on you saving $200 a month with a consistent 6% rate of return compounded monthly after applicable fees, charges and expenses. This example is for illustrative purposes only, is not indicative of any investment, and is not intended to constitute specific tax or investment advice. Your results will vary. You should consult your tax advisor or attorney for tax-based decisions. Note that regular investing does not ensure a profit or guarantee against a loss, and you should consider your willingness to stay invested in up as well as down markets.
How much could I save?
Saving is as easy as paying for a cup of coffee per day. Start by using the calculator below to determine how little everyday changes can mean significant savings for your future.
The information generated by the calculator is hypothetical in nature, does not reflect actual investment results, and is no guarantee of future results. No specific investment product is reflected and no fees, charges or taxes have been taken into account. This information is not intended to be financial advice. Please consult a financial professional regarding your specific circumstances.
Fact #1: Women live longer than men.
According to the National Center for Health Statistics2, the average life expectancy for women in the U.S. is 80.5 years, compared to 75.1 years for men. While many factors contribute to this difference, a recent shift to more proactive health measures plays a large role. Three in four women (75%) are engaging in one or more pandemic-specific healthy activities, including taking COVID-19 precautions (68%), eating healthy (57%), exercising regularly (53%) and getting plenty of rest (49%).3
Fact #2: Women still make less than men.
As of 2020, the women to men earnings ratio is approximately $.82 to $1.00.4 And while there are many influences contributing to the gap, there are just as many actions women can take to help improve their own financial situation, while further bridging the gap for women as a whole. Start by taking the Financial Wellness Assessment. Log in to your Plan account, then click the Financial Wellness tab on the home page. It’s only 12 questions and takes less than 5 minutes!
Fact #3: Women are less aggressive investors than men.
Generally speaking, women tend to invest more conservatively than men as a perceived way to preserve capital. In addition, most women (77%) believe that if they had a financial professional to help them invest, they’d be more confident about their financial future.5 Consider using the Plan’s investment advisory services offered through Voya Retirement Advisors, LLC (VRA) and powered by Edelman Financial Engines.
Fact #4: Women tend to claim Social Security at a younger age
According to the Center for Retirement Research at Boston College, women are more likely than men to start their Social Security benefits ahead of their Full Retirement Age.6 Social Security checks can be started as soon as age 62, but this is considered early claiming. Although claiming benefits as soon as possible is the most popular option, more women than men start at 62: 40% of women compared with 35% of men. Women are also more likely to claim at 63 or 64, with 8% of women starting benefits at each of these ages, compared with 7% of men. If you claim benefits early, you may also be likely to leave money on the table. You should consult a professional financial or tax as you consider your options.