Find out how to save for retirement and get closer to your retirement goals.
Most of us have seen our retirement savings eroded recently, and retirement may feel that much farther away. When conditions are difficult, you want to find ways to save that feel secure - and offer upside potential. Bottom line, it is more important than ever to continue to save, or start if you have not.
Saving early pays off
If you start saving early, a small amount can make a big difference. Assume you start saving $3,000 per year at age 50, with an 8% return. At age 65 you'll have nearly $100,000. If you start saving the same $3,000 amount (at the same 8% return) at age 35 instead of at age 50, you'll have saved nearly $400,000 by age 65*. That's four times as much. It pays to start early.
Find out if your assets can generate a lifetime income by using MetLife's Retirement Income Snapshot Tool.
People are enjoying longer and longer retirements, so you need to ensure you'll have enough to enjoy your future. To sustain your lifestyle, many experts believe you'll need 75-89% of your present income.1 Saving in taxed deferred vehicles is a smart place to start because your savings can usually grow faster if you don’t pay tax as the money is growing. Consider the benefits of the following savings investment vehicles:
401(k)
A 401(k) plan is a tax-deferred investment vehicle specifically designed for retirement. You only pay taxes on contributions and earnings when the money is withdrawn. Your employer's specific 401(k) plan will allow you to contribute up to a certain percentage of your before-tax pay; as of 2008, the maximum dollar amount the law allows an employee to contribute from before-tax pay is $15,500.
403(b)
A 403(b) plan is only available to employees of certain non-profit tax-exempt organizations: 501c(3) Corps, including colleges, universities, schools and hospitals. As with a 401(k) plan, all contributions and earnings to your 403(b) are tax deferred and many employers provide matching contributions to your 403(b) account which can range from 0% to 100% of your contributions.
Individual Retirement Account (IRA)
IRAs are one of the easiest, most convenient ways to meet your retirement goals. Like employer-sponsored retirement savings accounts such as 401(k)s, the money you save in an IRA grows tax-deferred* and becomes available to you without federal tax penalties when you turn 59½.
Deferred Annuity
Deferred annuities can be a great choice for building a tax-deferred retirement nest egg-especially if you want to save more than you might with IRAs and 401(k) plans. With a deferred annuity, you have the option to convert your annuity balance into an income stream which can generate income for the rest of your life.
If you've just started to save for retirement, you may relate to Tom's story.
Tom is married and has been working for nearly 10 years. He just started to plan for retirement and contributes regularly to his 401(k). Although Tom is far from retiring, he feels uncertain about relying on traditional sources, such as social security or pension, for retirement income. He also knows that he and his wife will probably experience a retirement spanning 30 years or more.
Tom's solution: Make small ongoing contributions to a fixed deferred income annuity. When Tom is ready to receive income payments, he can choose from several different payment options such as Lifelong Income for Two. The Income for Two payment option could provide payments for Tom and his wife as long as either of them is alive.
Find out where you stand by using our Retirement Income Snapshot.
Whether you save inside a tax deferred account of additionally outside of one, there are many different types of products that you can use to invest your savings. Here are a few.
Mutual Funds
Mutual funds pool the money of many people and invest it in a portfolio of stocks, bonds, and/or money market instruments to meet specific investment objectives. As an investor, you receive shares of the mutual fund in exchange for your investment dollars.
Learn more about mutual funds offered by MetLife Securities, Inc.
Think of your retirement savings as one big paycheck that may have to stretch out over a period of 30 years or more. If Social Security, your pension, and savings won't generate enough income to cover expenses for your lifetime, you may need other retirement income sources.
CD's
You can potentially increase your savings without risk to your principal with deposit accounts like the ones offered by MetLife Bank. CDs can have FDIC insurance; you can choose from:
To achieve long-term financial goals, you need to make more of the money you've saved. Let MetLife help you turn your retirement savings into additional income. Learn more about MetLife Bank.
Variable Annuities
With more growth potential in return for a higher level of risk, variable annuities can offer investment choice and flexibility through a variety of professionally-managed investment portfolios. These portfolios generally include stock and bond portfolios, ranging from conservative to aggressive risk levels. The value of a variable annuity will fluctuate, depending on how the investment options perform. Learn More.
MetLife's Disability Income Insurance and Life Insurance products offer guarantees**benefits that can help you protect your savings and future income.
If you were unable to work due to an unexpected illness or accident, then disability income insurance can be a way to replace a portion of your income and help you continue to save for retirement while maintaining your standard of living. Learn more about Disability Income Insurance
Having a life insurance policy in place can help provide guaranteed* income for your loved ones and lessen their financial burden when you're no longer here. The money can help with everything from mortgage payments to college tuition. Learn more about Life Insurance
Can you guarantee that you'll have enough money saved when you retire? If you start now, you will. Learn more about Funding Your Retirement.
Nearing Retirement
In Retirement
Not sure where to start? We can help. If you’re thinking about your future, we’ll give you the tools that can help protect and maximize your retirement income.
Want to know more about Retirement Income?
Take the Retirement IQ Quiz now
1Replacement Ratio Study - AON Consulting / Georgia State University, 2004
*Assumptions: Contribution is made at the beginning of each year, 8% effective yield, no withdrawals. This example does not describe any particular financial product or MetLife product and does not account for taxes or inflation..
Pursuant to IRS Circular 230, MetLife is providing you with the following notification: The information contained in this website is not intended to (and cannot) be used by anyone to avoid IRS penalties. This website supports the promotion and marketing of insurance and investment products. You should seek advice based on your particular circumstances from an independent tax advisor.
For any tax-qualified account, e.g. 401(k) plan or IRA, the tax deferred accrual feature is provided by the tax qualified retirement plan. Therefore, there should be reasons other than tax deferral for acquiring an annuity contract within a qualified plan, such as the death benefit.
Guarantees apply to certain insurance and annuity products (not securities, variable or investment advisory products) and are subject to product terms, exclusions and limitations and the insurer's claims-paying ability and financial strength.
A variable annuity is a long-term financial vehicle designed for retirement purposes. In essence, a variable annuity is a contractual agreement in which payment(s) is/are made to an insurance company, which agrees to pay out an income or a lump sum amount at a later date. There are contract limitations, fees, and charges associated with variable annuities, which include, but are not limited to, mortality and expense risk charges, sales and surrender charges, administrative fees, and charges for optional benefits. Early withdrawals may be subject to surrender charges, and taxed as ordinary income and, in addition, if taken prior to age 59½, an additional 10% federal income tax penalty may apply. Withdrawals reduce annuity contract benefits and values. Investments in variable annuities will fluctuate and values upon redemption may be less than the original amount invested. Variable annuities are not guaranteed by FDIC or any other government agency and are not deposits or other obligations of, or guaranteed or endorsed by, any bank or savings association.
Variable annuities are offered by prospectus only, which is available from your registered Representative. You should carefully consider the product’s features, risks, charges and expenses, and the investment objectives, risks and policies of the underlying portfolios, as well as other information about the underlying funding choices. This and other information is available in the prospectus, which you should read carefully before investing. Product availability and features may vary by state.
The amounts allocated to the variable investment options of a variable annuity's account balance are subject to market fluctuations so that, when withdrawn or annuitized they may be worth more or less than their original value.
Mutual funds and variable annuities are offered by prospectus only, which is available from your registered representative. You should carefully consider the product's features, risks, charges and expenses, and the investment objectives, risks and policies of the underlying portfolios, as well other information about the underlying funding choices. This and other information is available in the prospectus, which you should read carefully before investing. Product availability and features may vary by state.
The amounts allocated to the variable investment options of your variable annuity account balance are subject to market fluctuations so that, when withdrawn it may be worth more or less than its original value.
Metropolitan Life Insurance Company (MLIC), 200 Park Avenue, New York, NY 10166. Securities products offered by MetLife Securities, Inc. (MSI) (member FINRA/SIPC), 1095 Avenue of the Americas, New York, NY 10036. Banking products and services, including deposit accounts, offered by MetLife Bank®, NA, Member FDIC. MetLife Bank, MLIC and MSI are MetLife companies
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