Retirement Journey Field Note 3

Your tax deferred savings can multiply with the power of compound interest.



The Power of Compound Interest

Experts recommend contributing at least 10% of your current income to your future retirement. Check to see how much you are contributing. Look at your plan statement or visit your plan’s website.


This illustration is a hypothetical compounding example that assumes biweekly salary deferrals (for 30 years) at a 6% annual effective rate of return. It illustrates the principle of time and compounding. This chart is for illustrative purposes only and is not intended to represent the performance of any specific investment. Actual returns will vary and principal value will fluctuate. Taxes are due when money is withdrawn.