Boost your retirement savings with PERAPlus
The biggest fear about retirement, cited time and again by financial advisors, is simply running out of money. As a Colorado PERA member contributing to PERA’s Defined Benefit (DB) Plan, you’re already positioned well for retirement: A monthly check from PERA will help you pay your usual expenses.
But, if you’re anxious about having enough to support your needs in retirement, considering enrolling in the PERAPlus 401(k) and 457 Plans.
The PERAPlus Plans can supplement your retirement savings and help you reach your financial goals. These are voluntary savings plans on top of your PERA DB Plan that put aside more pre-tax money from every paycheck to help you plan for the future that you want. And now the PERAPlus Plans also have lifetime income options to help make savings go even farther in retirement!
Whether you call it an emergency fund, rainy day fund, or just good planning, saving money in a PERAPlus 401(k) or 457 Plan can be a lifeline when unexpected expenses occur in retirement. And the earlier you save in these accounts, the more opportunity your money has to grow.
Not Too Late to Start Saving
If you’re able to save more near the end of your working career, you can take advantage of “catch-up” contributions. When you turn 50, the IRS allows you to contribute an extra $6,500 in both 401(k) and 457 accounts that’s on top of the $20,500 annual limit for 2022.
To find out more about enrolling in the PERAPlus Plans, go to coperaplus.org. We also have a new online financial wellness library with great resources on creating a budget, investment basics, protecting your assets and much more.