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Winter 2008, Vol. 4, No. 1 | Index
Benefits Update: TIAA-CREF Retirement Program Review
Last month’s Open Enrollment period was a chance for all MBL employees to review their insurance plans and make any needed adjustments. But unlike health, dental, and life insurance benefits, the MBL’s retirement plan does not have a designated period to assess your plan to see if you are on track with your retirement goals. So with the start of the New Year, why not take some time to review your TIAA/CREF retirement program.
Is your account invested to get the risk/reward that is appropriate for your current life stage? If you are uncertain you may phone the TIAA-CREF Counseling Center at 1-800-842-2776 for advice or you may view an online webinar by going to <www.tiaa-cref.org/support/planning/index.html> and clicking on web seminars on the right side of the screen.
Are you saving for your retirement through the Group Supplemental Retirement Plan (GSRA)? If so, have you reviewed the amount? Are you able to increase your retirement savings? Below are a few simple illustrations that show the power of compounding and beginning as early as possible.
Beginning at age 40, $100/month contributed to the plan that earns a return of 6% will be worth approximately $70,000 at age 65. However, begin making the same $100/month contribution at age 28 and you would see a balance of about $157,000. Increase to $200/month and watch your balance grow to more than $135,000 for the 40 year old, and $315,000 for the 28 year old. Make your contribution a percentage of your pay and your contribution will increase with each increase in your salary.
The maximum amount you may contribute to the GSRA is $15,500 with an additional $5,000 allowed for those age 50 and over and a potential extra $3,000 for those with 15 years of service.
Finally, don’t forget about your beneficiary designation.
Have your personal circumstances changed so that you need to change your beneficiary? If so, you may make your change online after logging in to your account at <www.tiaa-cref.org>.
The Collecting Net is an employee newsletter published by the Communications Office. Comments and suggestions are welcome. Call (508) 289-7423 or e-mail us at
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