When it comes to retirement savings, where should I begin?
By taking full advantage of your workplace-based retirement savings plan, you can meet the challenge of building a stronger financial future with confidence. Here’s a guide to help new retirement savers get started:
Step 1: Decide How Much You’ll Contribute to Your Retirement Plan
The short answer is, contribute as much as you can to your retirement plan.1 Find an amount you’re comfortable with.2 If you contribute on a before-tax basis, you may find that your contributions don’t take as big a bite out of your paycheck as you might have thought.
Step 2: Decide How to Invest Your Plan Contributions
Where should you start?
What kinds of investments are best?
Step 3: Join Your Retirement Plan
You can't begin to save for retirement until you actually enroll in your retirement plan. It's fast and easy. To learn how, call 1-877-PRU-2100 or contact your plan administrator.
Step 4: Increase Your Contributions Regularly
Be sure to increase your contribution amount regularly—at least once a year. You may want to select the same time each year—such as your birthday, anniversary, or when you receive a performance review. Boosting your contributions on a regular basis can go a long way toward helping you achieve greater long-term financial security.
Withdrawals (other than qualified Roth withdrawals) are subject to income taxes and potentially a 10% federal income tax penalty if taken before age 59 ½ (457 Plans not subject to 10% penalty).