Ready, Set, Save! It’s Never Too Late

You may have some retirement savings stashed away and even a pension in your back pocket. But will that be enough to provide financial stability after you stop working? Life can be full of unexpected financial needs and responsibilities. In addition to day-to-day living expenses, your retirement income may have to stretch to cover extraordinary events, such as a health crisis or following a dream. 

You’ll Be Surprised

If you are eligible to participate in a workplace savings plan, consider its advantages as you start to save—or, if you’re ready, turn your modest steps into a stride.

With The Episcopal Church Lay Employees’ Defined Contribution Retirement Plan (Lay DC Plan) and The Episcopal Church Retirement Savings Plan (RSVP), you can grow your savings tax-efficiently over time, and on your terms. You decide the amount you want to invest (up to IRS limits) and how you want to invest it. You can also choose a target date fund, which determines the appropriate asset allocation based on your age and automatically adjusts it as you approach retirement.

“I’m a second-career priest and knew gaps in my expected retirement income needed filling. That's when I discovered the RSVP. I can put in money on a pre-tax basis and defer federal income tax on the investment gains,” the Rev. Michele Racusin, Chief Financial and Operations Officer, Diocese of California, says. “With compounding, my money works for me as I work for my money.”

You may be surprised how adding just 1% more to your workplace savings plan, combined with the power of compounding, can help boost your confidence in your financial future. Under the Lay Pension System, an employer that has adopted the Lay DC Plan typically provides a base contribution of at least 5% and matches up to 4% of employee contributions. This means every dollar you save is doubled, up to the employer’s match limit: your 1% saved results in 2% in your account, your 4% saved results in 8% in your account.

Could you save at least 1% of your salary? “Every little bit helps. Set it up so that your savings are deducted from your pay, and you’ll never miss it. Start with at least a 1% match right away and increase as you can. It helped me that my employer was contributing as well as matching my contribution.” Matthew Payne, Director of Operations at the Historical Society of The Episcopal Church, says.

Watch the Rev. Michele Racusin, Matthew Payne, and others who serve The Episcopal Church tell their stories, and discover why it’s not too late to save, or to save more, for retirement.

Are You Ready?

If you’re unsure where you are on the road to retirement readiness or need help getting started on your financial journey, talk with an expert. Contact a Fidelity planning expert if you participate in the RSVP or Lay DC Plan, or schedule a confidential conversation with one of our financial education specialists if you participate in The Church Pension Fund Clergy Pension Plan or The Episcopal Church Lay Employees’ Retirement Plan.

Saying “yes” to small savings steps today could make a big difference to your financial independence and ability to say “yes” in retirement. 

Comments? Questions? Concerns? CPG is listening. Please reach out to us at corpcomm@cpg.org.