Just One StepSM. One change. One percent. One step closer to retirement.

Transcription

1 Just One StepSM One change. One percent. One step closer to retirement.

2 Feeling overwhelmed by the idea of saving for retirement or paralyzed by investment options? Today is when you take control. Put the excuses aside. It doesn t take much time to enroll or to increase your contribution to your existing retirement account by 1 percent. It s that easy. With less worry, you get to focus on what really matters in life. Make your one change now.

3 Move toward your financial future with Just One Step.

4 Just One Step Today You Can Do It! You may not feel you can save right now for your retirement. You might have a lot of credit card or student loan debt, or feel like there s nothing left after paying your bills. Or, maybe you intend to start saving next year. There will always be competing priorities for your money. This brochure will show you how it s possible to both manage your money now and set aside money for the future. And you can start by taking just one step today. The best place to save and build toward retirement readiness is your employer s retirement plan. If you haven t enrolled yet, now is the time. If you ve already enrolled, bump up your contribution by 1 percent. Just one. Then sit back and watch that 1 percent strengthen your retirement readiness. Can 1 Percent Really Make a Difference? When you increase your retirement account contribution by 1 percent, the impact may be bigger than you think. Compound interest also factors into your bottom line, especially when you have a long time until retirement. Compound interest is when you earn interest on the money and interest you ve already earned. Let s assume you ve been contributing 3 percent since age 20. How would 4 percent just 1 more percent compare at different stages of your life? 67 $582,581 $476,816 $776,772 $635, $146,940 $96,774 $195,919 $129, $57,739 $29,367 $76,985 $39, $17,288 $5,133 $23,050 $6,844 Age Account Balance Total Interest Earned Account Balance 3% 4% Total Interest Earned Assumes $35,000 annual salary, 3 percent annual salary increases and 7 percent rate of return compounded monthly. This is a hypothetical example for illustrative purposes only and is not representative of any specific investment. Investments are subject to market risk and fluctuate in value. Past performance is no guarantee of future results and individual results will vary.

5 What Would Just One Step Today Buy You in Your Retirement Years? Depending on your timeline to retirement, a 1 percent increase could significantly benefit your lifestyle when you re no longer working. This illustration assumes each person is already contributing 3 percent, has $5,000 invested and will experience 7 percent growth over time. Each person has accumulated $430,664 at age 67 by saving 3 percent since age year-old 35-year-old 45-year-old 55-year-old Annual income $30,000 $40,000 $54,000 $72,000 Number of years for 1% to grow Savings at age 67 with a 1% increase to 4% $543,456 $497,676 $467,303 $446,401 Additional retirement savings from 1% increase $112,792 or a small cabin or condo $67,012 or part of a grandchild s college tuition $36,639 or groceries for two for five years $15,737 or a new compact car Additional savings from increasing contribution 1% each year for the first 10 years of savings $903,723 $519,649 $264,075 $91,960 Now that you ve seen what a 1 percent increase can do, take the time to think about what an even bigger increase could buy.

6 Your time is precious. In less time than it takes you to commute to work, plan a family meal, post on social media or grab your favorite coffee order, you can do one thing to prepare for retirement. 3 Tips for Moving the Dial on Retirement Readiness Financial planners recommend saving 10 to 15 percent of your income for retirement, preferably starting in your 20s. You might not be able to contribute that much today, but you can build up to that amount over time by making small increases. If you re closer to retirement, you might want to start out with a higher contribution percentage than your 25-year-old coworker might select. Here are three easy tips for increasing your contribution: 1. Find 1 percent in your budget Let s say you make $30,000 a year, which equates to $2,500 a month. One percent of that amount is $25. Here are some simple ways to come up with $25: Bring your lunch instead of eating out on three days 1 during the month save $30 Take public transportation instead of driving 2 (for even more savings, ride your bike) save $22 Have plain coffee instead of a latte every day 3 (or bring your coffee from home on occasion) save $27 Wherever you find that 1 percent, it can make a difference to your retirement account balance. 1 Lunchtime: Americans Spend Nearly $1K Annually Eating Out For Lunch, article reveals Americans spend an average of $10 on lunch. Forbes.com, Sept. 9, 2013, 2 Driving Cost Calculator, using default values, 3 Based on prices at popular chain, $3.45 for medium latte ($69 for the month) versus $2.10 for medium coffee ($42 for the month), tip not factored in, 4 Your plan may have an annual automatic increase feature that can help you save more. Should you decide to change your contribution amount directly instead, you will be opted out of this feature.

7 2. Enroll in your retirement account or increase your contribution percentage If you re not enrolled yet, you can do so by creating an account online (if your plan permits) and selecting your contribution amount. You can also enroll by completing paper forms from your employer. If you re already enrolled or were automatically enrolled, you can increase your contribution percentage. 4 Log in at Select the Access Your Account link From the Account menu, select Change Contribution Amount Increase your contribution percentage by 1 percent 3. Keep the momentum going It s important to increase your retirement account contribution every 1 percent counts whenever you can. Every time you get a raise, bonus or tax refund, or have a little extra money, put it toward your retirement. Make your 1 percent increase an annual event just follow the previous steps Set an annual reminder to increase your contribution by 1 percent Take Care of Your Future Self Today Think of yourself at 68 or even 78. Won t it feel good to have regular retirement income instead of wondering how you ll live and meet your monthly expenses? You can start by taking Just One Step. One change. One percent. One step closer to retirement. For more information, visit

8 Employers and plan participants should carefully consider the investment objectives, risks, charges and expenses of the investment options offered under the retirement plan before investing. The prospectuses for the individual mutual funds and each available investment option in the group annuity contain this and other important information. Prospectuses may be obtained by calling Please read the prospectus carefully before investing. Investments are subject to market risk and fluctuate in value. The Standard is the marketing name for StanCorp Financial Group, Inc. and its subsidiaries. StanCorp Equities, Inc., member FINRA, wholesales a group annuity contract issued by Standard Insurance Company and a mutual fund trust platform for retirement plans. Third-party administrative services are provided by Standard Retirement Services, Inc. Investment advisory services are provided by StanCorp Investment Advisers, Inc., a registered investment advisor. StanCorp Equities, Inc., Standard Insurance Company, Standard Retirement Services, Inc. and StanCorp Investment Advisers, Inc. are subsidiaries of StanCorp Financial Group, Inc. and all are Oregon corporations. The Standard 1100 SW Sixth Avenue Portland, OR Just One Step SM RP (10/15)