[This article was archived on 7/25/2017.]
Many company-sponsored retirement plans offer an "employer match." This means that the employer will match a certain percentage of your retirement plan contribution.
Here's how you can benefit: using the example at left, assume you earn $35,000 a year and contribute 6% of your salary ($2,100) annually. Also assume that your employer offers a match of 50% of your contributions up to 6% of your annual pay – which provides $1,050 more in tax-deferred contributions going directly into your plan each year. That's like getting a raise just for saving for retirement.
As the graph shows, over time this can provide a substantial addition to your retirement assets. Check with your Human Resources or Benefits department to learn if your plan offers an employer match, and if they do, take advantage of it.
This hypothetical example is for illustrative purposes only and does not represent any actual investment performance, price or yield. This illustration assumes a beginning balance of $0, assumes no increase in earnings and has an annual rate of return of 6%. Investment returns are not guaranteed, and your actual return may vary significantly from that shown.
Before investing, you should carefully consider the investment objectives, risks, charges and expenses of the variable annuity contract and the underlying investment funds. This and other information is contained in the contract prospectus or brochure and underlying funds prospectuses and summary prospectuses. Please read the contract prospectus or brochure and underlying fund prospectuses and summary prospectuses carefully before investing. The contract prospectus or brochure and underlying fund prospectuses and summary prospectuses can be obtained by mail or by calling 1-800-468-3785.
Mutual of America's group and individual retirement products are variable annuity contracts and are suitable for long-term investing, particularly for retirement savings. The value of a variable annuity contract will fluctuate depending on the performance of the Separate Account investment funds you choose. Upon redemption, you could receive more or less than the principal amount invested. A variable annuity contract provides no additional tax-deferred treatment of benefits beyond the treatment provided to any qualified retirement plan or IRA by applicable tax law. You should carefully consider a variable annuity contract's other features before making a decision.