You are most likely familiar with the TRS and ORP since your participation in one of these programs is mandatory. But did you know the UTSaver TSA and UTSaver DCP – the voluntary programs to which you can make pre-tax and/or after-tax contributions – are just as important a part of the Retirement Programs? Voluntary contributions to these programs have become an increasingly important part of saving for retirement. Consider why the extra savings could be important to you:
Thanks to stunning advances in medicine, health, and nutrition, most Americans now anticipate living long past their traditional retirement age. One in five will probably celebrate their 100th birthday. This could stretch your retirement income over a span of several decades.* A decline in the popularity and coverage of traditional pension plans finds the average worker depending more often on personal retirement savings. The Baby Boomer generation preparing to retire in the next ten years could lead to potential strains on Social Security benefits and a decrease in benefits for future retirees.
*The 2003 Retirement Confidence Survey, Employee Benefit Research Institute, American Savings Education Council, Mathew Greenwald & Associates, April 2003
The UTSaver TSA and UTSaver DCP are designed to help you save more money on your own so that you have the income needed to last throughout your years in retirement. Consider making contributions and see the impact of how investing even a small amount can add up over the long-term.