We all know that it’s important to save for retirement, but is it worth saving even a small amount – say 1 percent of your pay — if that’s all you can afford?
The answer is yes, because of the power of compounding interest. When you save money for retirement in the Retirement Savings Plan of the Presbyterian Church (U.S.A.), you not only earn interest on your initial saving amount — no matter how small — but you also earn interest on the interest through compounding.*
Increasing the amount of your savings by even a small amount can help, too. According to Fidelity Investments, plan administrator of the Retirement Savings Plan, “Consistently saving a little bit more can add up over time.” Read some examples of how much your retirement savings can increase over time with just a small additional contribution.
If you already participate in the Retirement Savings Plan, check your inbox this month for an email from Fidelity showing
Find out more about the Retirement Savings Plan. If you have questions, call the Board of Pensions at 800-773-7752 (800-PRESPLAN), or call Fidelity Investments at 800-343-0860 (mention plan #57887).
If your employer offers the Retirement Savings Plan and you’re not contributing, ask how to get started.
If your employer doesn’t offer the Retirement Savings Plan, ask them to contact the Board of Pensions for more information. All employees who work for a PC(USA)-affiliated employer are eligible to participate in the Retirement Savings Plan if their employer offers the plan to them.
*Keep in mind that investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money.