Expert Q&A: How to meet your financial goals with the Retirement Savings Plan

If your employer offers the Retirement Savings Plan of the Presbyterian Church (U.S.A.), the plan provides you a powerful opportunity to grow retirement savings with flexibility and confidence. Whether you're just beginning to save or looking to build on what you've already started, the Retirement Savings Plan is designed to support your long-term financial goals.

In this Q&A, John Matekovic, Vice President, Benefits, at the Board of Pensions explains how the Retirement Savings Plan supports members at every stage of their financial journey — from choosing investments to understanding tax advantages and getting started with small contributions.

With 12 investment options available in the Retirement Savings Plan, what is the best way to approach making a choice?

Choice and flexibility are key ingredients in the Retirement Savings Plan. Plan participants can choose from a mix of funds across the investment spectrum to meet their goals, including socially responsible funds and a fossil fuel-free global fund, and they may select from additional target date funds. For those who prefer expert guidance, Fidelity’s Managed Accounts provide a more personalized portfolio based on individual investment preferences.

What are target date funds?

Target date funds offer a single, simplified investment solution that automatically adjusts over time to become more conservative as you approach retirement. Each fund is named for a specific retirement year — for example, if you plan to retire around 2040 at age 65, you might choose the 2040 Target Date Fund. Early on, the fund emphasizes growth through stocks; as the target date nears, it gradually shifts toward more stable investments like bonds to help preserve your savings.

What are the tax benefits of participating in the Retirement Savings Plan?

The Retirement Savings Plan allows an individual to make contributions on a traditional pretax basis, Roth after-tax basis, or both. Each contribution method offers distinct tax advantages — pretax contributions reduce your taxable income now and grow tax-deferred until retirement, while Roth contributions and their earnings are made after taxes and can be withdrawn tax-free in retirement if certain requirements are met. This flexibility gives participants the opportunity to choose the tax strategy that best supports their long-term savings goals.

What would you say to someone who doesn’t think they can afford to participate?

We know saving can be difficult, but starting early — even with just 1% or 2% per year — can build financial security over time. Try planning increases every Jan. 1 and July 1, and take advantage of the Retirement Savings Plan’s features, like flexible contribution options, diverse investment choices, tax advantages, and tools from Fidelity to help you stay on track. You’ll be on your way to a more secure retirement for you and your loved ones.