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 Save more?
Save more — and you’re 50 or older?
Rebalance your portfolio?
Check your investments?
Estimate your retirement income?
10 Reasons to Save
The advantages of the Alcoa Savings Plan really add up.
You'll probably need more for retirement than you realize.
Most of the money you'll need for retirement is going to come from you. Do you know how much you'll need?
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Learn More About Your Investments
Investment Fund Fact Sheets can help you choose the investment mix that's right for you. To access these fact sheets:
- Go to the Your Benefits ResourcesTM website and log in.
- On the left under Personal Information, click the Benefits link.
- Select the Alcoa Savings Plan tab.
- From the "Find It Fast" drop-down menu on the right-hand side, choose "Check All Funds" and then click "Go."
Five Facts You Should Know About Your Savings Plan Account
Arm yourself with the facts and determine what, if anything, the recent financial news means for your retirement investments.
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15.7 Times Final Pay Needed
For Retirement Readiness
The average U.S. employee will need 15.7 times their final pay in retirement resources to maintain their current standard of living during retirement, according to a Hewitt Associates analysis.
Social Security is expected to provide 4.7 times final pay, leaving employees responsible for accumulating the remaining 11 times final pay from other sources such as company-provided plans and personal savings.
Hewitt's analysis reveals that 18% of employees who contribute to a defined contribution plan and work a full career are expected to achieve the retirement readiness goal. On average, these employees are on track to accumulate 13.3 times their final pay (including Social Security) leaving a shortfall of 2.4 times pay, Hewitt said. In other words, they're expected to meet just 85% of their financial needs in retirement. Nineteen percent are expected to have a shortfall of five times their final pay or more at retirement.
Meanwhile, as a result of recent market volatility, four out of five workers are still expected to fall short of meeting all their financial needs in retirement unless they take action to improve their savings habits or retire at a later age.
"Employees have been able to recoup a good portion of the retirement assets they lost due to market volatility, but unfortunately most workers are still falling significantly short of meeting their retirement needs," said Rob Reiskytl, Hewitt's leader of Retirement Plan Strategy and Design.
Hewitt's analysis revealed that workers can significantly improve their situation by making a few small adjustments:
- Start saving: According to recent Hewitt research, 26% of eligible employees currently do not contribute to a defined contribution plan. Hewitt projects these workers will have saved, on average, less than half of what they will need by the time they reach retirement age.
- Regularly increase your contribution rate: Hewitt's analysis reveals that many workers who commit to increasing their retirement contributions by as little as 1% each year for five years will be on track to meet most of their financial needs in retirement.
- Work longer: According to Hewitt's analysis, employees who delay retirement to age 67 can significantly reduce their savings shortfall.
Hewitt examined the projected retirement levels of more than two million employees at 84 large U.S. companies for the study.
Source: PLANSPONSOR.com
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