Worksheet 1: Savings Resulting from Additional Tax-Deferred Contributions

Complete the worksheet below by referring to Table 4. Find the dollar figure that best matches the amount of savings you could have at age 65 by contributing an additional 2% of your pay (or 1% of pay with a 1% match) to an employer tax-deferred plan.

Figures in Table 4 are based on your age and annual salary. For example, if your annual salary is $30,000 and you are age 50, you could have $15,077 at age 65 by saving an additional 2% of your pay.

If your earnings exceed the amounts in Table 4, combine two columns to get the proper amount (example: $30,000 + $40,000 = $70,000). You can also double the 2% figure to 4% of earnings if you plan to save 2% of pay yourself and will receive a corresponding 2% match. Calculate the potential savings for all household earners.