Do You Need to Catch Up on Retirement?
$225,475: Potential additional savings by using catch-up contributions
What's the best thing about hitting the big 5-0? Retirement is getting closer. What's the next best thing? You can save more money! If you play "catch-up" by adding an extra $5,500 to your 401(k) contribution (assuming a $25,000 account balance) beginning at age 50, you can potentially save more than $200,000—or a total of $1M by age 70. That's assuming, of course, that "life" issues—such as poor health, disability or downsizing—don't get in the way of working. That's why it's best to start early, before the big 5-0 turns into the big "Uh-Oh!"
No matter where you are on your retirement journey, you can use these BlackRock resources to help you navigate the new world of retirement.
*For illustrative purposes only and not indicative of any investment. This illustration assumes your ability to continue to make contributions on a monthly basis. Assumes starting balance of $25,000 with 7% annual return compounded monthly and no distributions.
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