With Halloween just in our rearview mirror, it’s not too late to unveil some scary retirement stats. My hope? That you’ll be spooked into making positive money moves before your future sneaks up on you.
The scary truth: According to the August 2021 Federal Retirement Thrift Investment Board meeting minutes, only 73% of Blended Retirement System TSP active-duty participants were contributing the 5% to the Thrift Savings Plan necessary to get the full match. That means nearly a third are leaving free money on the table.
- If you’re spooked: Find a way to make a 5% — or bigger — contribution to the TSP part of your financial routine. You might have to cut back or cut out other expenses to make this a reality. However, it might be as simple as allocating “found money” in the form of time in service pay increases, promotion raises, the upcoming cost of employment increase … or a portion of your advance child tax credit payments. Make it happen.
The scary truth: Each year for the last couple of decades, the Employee Benefit Research Institute has conducted what it calls a Retirement Confidence survey. In 2021, only 27% of respondents were “very confident” that they would have enough money to “live comfortably throughout their retirement years.”
- If you’re spooked: Start saving for retirement today. It doesn’t take a lot to get the ball rolling. Whether you’re covered by the Blended Retirement System or not, you can participate in the aforementioned TSP. You can contribute as little as 1% of your pay by signing up at myPay or through your service’s payroll provider.
The scary truth: Throughout the pandemic, I applauded the boost to the …….