1. Saving is Essential  Nest egg requires many years to build.  You may need at least 70%–80% of your current salary to retire comfortably. 2  If you don’t save, you may have to work during retirement.  Retirement could last over 20 years. 2 Social Security Administration news release, “The Social Security Administration and the American Savings Education Council Announce National ‘Save for Your Future’ Campaign,” May 17, 2002, http://www.ssa.gov/pressoffice/retiremint.htm; Center for Retirement Research at Boston College, “Myths and Realities about Retirement Preparedness,” May 2006, http://www.bc.edu/centers/crr.

2. How Much Should You Save?  It can be overwhelming and frustrating.  Here’s a simple “rule of thumb”:  In your 20s, save 7% of your salary.  In your 30s, save 10% of your salary.  In your 40s, save 15% of your salary.  In your 50s, save 20% of your salary.  The important thing is to start saving as much as you can right now!

3. Gross Pay$2,000$2,000 Raise 80 Total Pay$2,000$2,080 Minus Estimated Tax Withheld- 380- 395 Total Take-Home Pay$1,620$1,685 Difference in Take-Home Pay$65 Paycheck Comparison* Before After Raise Raise * For illustrative purposes only. Assumes federal income tax withholding of 15% and state and local income tax withholding totaling 4%, and does not account for Social Security or Medicare taxes.

4. Gross Pay$2,000$2,080 Minus Contributions- 50 - 100 to Plan (Before Tax) Taxable Pay$1,950$1,980 Minus Estimated Tax Withheld - 371- 376 Spendable Pay$1,579$1,604 Paycheck Comparison* Before After Raise It’s a win-win: You’re getting $25 more pay per month, and you’re contributing $50 more a month for retirement, which you haven’t seen yet! * For illustrative purposes only. Assumes federal income tax withholding of 15% and state and local income tax withholding totaling 4%, and does not account for Social Security or Medicare taxes.

5. Savings after 10 years Savings after 20 years Savings after 30 years $9,208 $29,647 $75,015 $18,417 $27,625 $59,295 $88,942 $150,030 $225,044 Growth Over Time* * For illustrative purposes only. This hypothetical example does not represent the performance of any investment options. It assumes an 8% rate of return and reinvestment of earnings with no withdrawals. The illustration does not reflect any charges, expenses or fees that may be associated with your Plan. The tax-deferred accumulations shown above would be reduced if these fees had been deducted. $50 monthly $100 monthly $150 monthly

6. Budgeting Ideas Expense Give Up How Often? Monthly Savings 5 Value if Invested for 25 Years 6 Dinner outOnce a week$100$95,737 Lunch outTwice a week$50$47,868 Coffee and bagel Twice a week $20$19,147 Vending machine soda Once a day$12$11,488 Movie ticketOnce a month$10$9,574 5 Monthly costs are based on general averages. 6 This illustration is hypothetical and assumes an investment in a tax-deferred retirement account in which you earn an average annual rate of return of 8%, compounded monthly. This hypothetical example is not based on (or predicting the performance of) any specific investment plan or savings strategy.