Save more today and help your retirement plan grow

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Save more today and help your

retirement plan grow

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Save more today and help your retirement plan grow > 2

• How much do you need to save?

• How can you make saving easier?

• How does saving affect your paycheck

and retirement?

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• Factors to consider:

–

Desired retirement lifestyle.

–

Years until retirement.

–

Current retirement savings.

• Helpful tools on

https://my.vanguardplan.com

:

–

Retirement Income Calculator.

–

Plan Savings Calculator.

How much should you save?

Consider saving

12% to 15% of your pay for retirement, including

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75%–85%

The retirement income rule of thumb is to

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• Employer-sponsored plans.

• Personal savings.

• Social Security.

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• Automatic pre-tax contributions.

• Tax-deferred growth.*

*When taking withdrawals from a tax-deferred plan before age 59½, you may have to pay ordinary income tax plus a 10% federal penalty tax.

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• Increase savings when you get a raise.

• Save beyond the plan.

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Where can you

cut expenses?

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Small changes add up quickly

Savings after

$0.99 coffee versus

$2.50 gourmet coffee

$2.50 packed lunch versus

$5 fast food lunch

1 year

$347

$575

30 years

$27,400

$45,500

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Savings rate

4%

6%

8%

10%

Annual contribution

$1,200

$1,800

$2,400

$3,000

Real impact on take-home pay

$1,020

$1,530

$2,040

$2,550

Tax savings

$180

$270

$360

$450

Weekly impact on paycheck

$20

$29

$39

$49

This example assumes you are in the 15% tax bracket and have a $30,000 salary. Weekly impact amounts are estimated.

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Big difference in the long run

Assumes an average annual rate of return of 6%, a 30-year period, an annual salary of $30,000, and an annual pay increase of 2%. This hypothetical illustration does not represent the return on any particular investment. The final account balances do not reflect any taxes or penalties that may be due upon distribution. Withdrawals from a tax-deferred investment before age 59½ are subject to a 10% federal penalty tax unless an exception applies. Figures are rounded to the nearest $100.

Earnings

Amount contributed

$265,400

$353,800

$109,500

$146,000

6% savings

$176,900

15% savings

12% savings

9% savings

$442,400

$155,900

$207,800

$103,900

$259,800

$73,000

$182,600

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Future increases will be indexed for inflation.

Maximum plan contributions

Year

Investors under age 50

Investors age 50 or older

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Choose the right

investment mix

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Stocks, bonds, and

short-term reserves

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Average annual returns

5.5%

10.2%

3.6%

Average

annual

return

1926–2013

The performance data shown represent past performance, which is not a guarantee of future results. When determining which index to use and for what period, we selected the index that we deemed to fairly represent the characteristics of the referenced market, given the available choices. For U.S. stock market returns, we use the Standard & Poor’s 90 Index from 1926 to March 3, 1957; the Standard & Poor’s 500 Index from

March 4, 1957, to 1974; the Wilshire 5000 Index from 1975 to April 22, 2005; the MSCI US Broad Market Index through June 2, 2013; and the CRSP US Total Market Index thereafter. For U.S. bond market returns, we use the Standard & Poor's High Grade Corporate Index from 1926 to 1968; the Citigroup High Grade Index from 1969 to 1972; the Lehman Brothers U.S. Long Credit AA Index from 1973 to 1975; the Barclays U.S. Aggregate Bond Index from 1976 to 2009; and the Spliced Barclays U.S. Aggregate Float Adjusted Bond Index thereafter. For U.S. short-term reserves, we use the Ibbotson U.S. 1-Month Treasury Bill Index from 1926 to 1977, and the Citigroup 3-Month Treasury Bill Index thereafter. Unlike stocks and bonds, U.S. Treasury bills are guaranteed as to the timely payment of principal and interest. Index performance is not illustrative of any particular investment because you cannot invest in an index.

All investing is subject to risk, including the possible loss of the money you invest. Bond funds are subject to the risk that an issuer will fail to make payments on time, and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments. Source: Vanguard.

■

Short-term reserves

■

Bonds

■

Stocks

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The impact of inflation

3.0%

Real

return

Inflation

rate

1926–2013

■

Short-term reserves

■

Bonds

■

Stocks

■

Inflation rate

2.5%

7.2%

0.6%

The performance data shown represent past performance, which is not a guarantee of future results. When determining which index to use and for what period, we selected the index that we deemed to fairly represent the characteristics of the referenced market, given the available choices. For U.S. stock market returns, we use the Standard & Poor’s 90 Index from 1926 to March 3, 1957; the Standard & Poor’s 500 Index from March 4, 1957, to 1974; the Wilshire 5000 Index from 1975 to April 22, 2005; the MSCI US Broad Market Index through June 2, 2013; and the CRSP US Total Market Index thereafter. For U.S. bond market returns, we use the Standard & Poor's High Grade Corporate Index from 1926 to 1968; the Citigroup High Grade Index from 1969 to 1972; the Lehman Brothers U.S. Long Credit AA Index from 1973 to 1975; the Barclays U.S. Aggregate Bond Index from 1976 to 2009; and the Spliced Barclays U.S. Aggregate Float Adjusted Bond Index thereafter. For U.S. short-term reserves, we use the Ibbotson U.S. 1-Month Treasury Bill Index from 1926 to 1977, and the Citigroup 3-Month Treasury Bill Index thereafter. Unlike stocks and bonds, U.S. Treasury bills are guaranteed as to the timely payment of principal and interest. Index performance is not illustrative of any particular investment because you cannot invest in an index.

All investing is subject to risk, including the possible loss of the money you invest. Bond funds are subject to the risk that an issuer will fail to make payments on time, and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments. Source: Vanguard.

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Choose your investments

• Identify your goals and time horizon.

• Choose your investment mix.

• Select your funds.

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Choose from among

the funds in your

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• Make the most of your plan:

–

Save in the plan first.

–

Increase contributions when you can.

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Support on the web

• https://my.vanguardplan.com

–

View and manage your account.

–

Receive account statements, confirmation notices, and

tax forms electronically.

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Put your plan

into action

• Join your plan.

• Increase your savings

annually.

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Retirement plan recordkeeping and administrative services are provided by The Vanguard Group, Inc. (VGI).

VGI has entered into an agreement with Ascensus, Inc., to provide certain plan recordkeeping and administrative

services on its behalf. Ascensus is not affiliated with The Vanguard Group, Inc., or any of its affiliates.