Will you be ready How the Hybrid Plan Works 2 Voluntary Contributions Reduce your taxable income by increasing your voluntary contributions Learn more about saving with VRS educational resources for members ID: 1028940
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1. The future is coming.It’s closer than you think.Will you be ready?
2. How the Hybrid Plan Works2
3. Voluntary ContributionsReduce your taxable income by increasing your voluntary contributions.Learn more about saving with VRS educational resources for members.Increase your contributions until you reach the maximum level.Pay yourself first. You’re worth the investment in your future!3You can voluntarily contribute up to an additional 4 percent in 0.5 percent increments into the Hybrid 457 Deferred Compensation PlanYour employer must match the first 1 percent of your voluntary contribution into the Hybrid 457 Deferred Compensation with a corresponding contribution of 1 percent of your creditable compensationEach of your additional 0.5 percent increases will be matched by your employer with a 0.25 percent contributionThe match will be credited into the Hybrid 401(a) Cash Match PlanYou can increase or decrease your voluntary contributions on a quarterly basis
4. Generations & RetirementMillennialsBorn 1981-1999Manage day-to-day money issuesDeal with serious debt Give low priority to saving and investingNeed to begin saving for retirementNeed to build emergency savings Respond to causesLike interactive communicationWant transparencyGeneration XBorn 1965-1980Have multiple financial obligations Need advice for managing cash flowNeed to save more money for future retirement needsRespond to sources they trustWant education to be unbiased, free from conflicts of interest or hidden agendasBoomersBorn 1946-1964Have strong money management skillsMay not have saved enough Deal with college bills Lack emergency savingsSee long-term care costs increasingNeed to work with a financial advisorNeed to run financial projection for retirement income4
5. Does This Sound Familiar?“I’m already saving the minimum. Will increasing my voluntary contributions really make a difference in the long run?”“I’ve got to help my parents and pay my children’s college bills. Then I’ll worry about retirement.”“I’d like to learn more about saving for retirement, but I can’t afford to pay a financial advisor.”“I need income to pay bills now, not to save for some point in the future.”“How can I buy the things I want, if I have to put more money into my retirement savings?”“I’ll start saving for retirement when I get a better job… when I make more money… when I pay off my debt… when I…”“Retirement’s a long way off… there’s plenty of time to save.”5
6. Consider These StatisticsMore than half of Generation Xers (59%) are not saving enough for retirement; 40% live beyond their means.More than two in five (42%) Millennials have yet to plan for retirement.Tax deferral is important for retirement savings, say 75% of Boomers.When participants perform retirement income calculations, 20% increase contributions by five percentage points.Four in five (80%) U.S. households with at least one earner have retirement savings that amount to less than their annual income. Experts suggest saving 10%-15% of current pay to have sufficient retirement savings.More than 38 million U.S. working-age households do not have retirement accounts. 6
7. See the Difference7
8. Increase Your ContributionsReduce your taxable income by increasing your voluntary contributions.Learn more about saving with VRS educational resources for members.Pay yourself first. You’re worth the investment in your future!8You can increase or decrease your voluntary contributions on a quarterly basis To make a change to your voluntary contribution, use the Account Log-in page on www.varetire.org/hybrid or call Investor Services at 1-877-327-5261 and select option 1 The cut-off for the change is the 15th of the month prior to the next quarter If the 15th is not a business day, the deadline will be the next business day after the 15thExample: You must request the change by September 15 for the change to be effective in the first payroll of October
9. You Have the Power!Increase your voluntary contributions today. Small increases can make a big difference!Reduce your taxable income by increasing your voluntary contributions.Learn more about saving with VRS educational resources for members.Increase your contributions until you reach the maximum level.Pay yourself first. You’re worth the investment in your future!Remember thatit’s never too early to start saving for retirement!9
10. The future is coming.You can be ready.Increase your voluntary contributions today.10
11. For more information, contact your human resource officeor visit www.varetirement.org/hybrid.html11