National Retirement Security Month

October 8, 2024

National Retirement Security Month

October is National Retirement Security Month. It's a great time to reflect on your vision for retirement and set goals to get you there. According to the National Institute on Retirement Security (NIRS), 55% of all Americans are concerned that they cannot achieve financial security in retirement. Here are some frequently asked questions to assist you in your retirement planning:

Q: How much do I need to retire?

A: The amount you need to retire depends on several factors, such as your desired lifestyle, anticipated expenses, healthcare needs, and expected longevity. Some experts say to aim for 80% of your pre-retirement income annually in retirement. Others recommend saving 10 times your final salary by retirement. It's best to consult with a financial advisor to personalize your retirement goals based on your specific situation, investments, and future plans.

Q: Do I need to save more than Social Security + my IMRF pension?

A: Yes, it's important to save beyond your pension and Social Security to protect against inflation, unpredictable healthcare costs, longer lifespans, and the uncertain financial condition of Social Security. Saving additional funds will provide you the financial freedom you desire in retirement.

Q: How do I save more for retirement?

A: IMRF's Voluntary Additional Contribution (VAC) program is an easy way to help you save additional retirement income. With VAC, you can elect to save between 1% and 10% of your reported earnings in an account that currently earns 7.25% interest. Contributions are after-tax and do not reduce your taxable income as in a 457 or 403(b) plan. The VAC program is low-risk and offers higher interest rates than many other retirement savings options.

For more information on VAC, visit these links:

• Tier 1 Members
• Tier 2 Members

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