
<p>Retirement insights from a Colorado PERA perspective</p>



<p></p>


A distant view shows a mountainous landscape with sloping peaks, green trees in the foreground, and a cloudy sky above.


<p>News headlines often declare that Americans aren’t saving enough money. In fact, <a href="https://www.bankrate.com/banking/savings/emergency-savings-report/">a recent survey by Bankrate</a> found less than half of those surveyed had enough money to afford a $1,000 emergency expense.</p>



<p>April 6 through April 10 is&nbsp;<a href="https://americasavesweek.org/" target="_blank" rel="noreferrer noopener">America Saves Week</a>, an annual initiative of the Consumer Federation of America, a nonprofit consumer advocacy organization. It promotes the value of saving money and the importance of making a plan to save.</p>



<p>The America Saves Week campaign encompasses five themes throughout the week to help make the process of building a saving plan less overwhelming. It’s all about taking small steps that make a big difference in your financial future.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Building a strong foundation</h2>



<p>A strong financial foundation begins with knowing where you are and where you want to go. That means taking time to understand your income, track your spending, and identify your goals.</p>



<p>One of the easiest ways to strengthen your financial foundation is to&nbsp;automate your savings. When you schedule regular transfers from your checking to your savings account, you remove the temptation to spend first and save later. You can start small with just $10 or $20 from each paycheck and increase the amount over time.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Expect the unexpected</h2>



<p>Whether it’s a flat tire, a medical bill, or a surprise home repair, unexpected expenses can happen any time. Having an emergency fund—even a modest one of just $500—can protect you from relying on credit cards or feeling stressed when something goes wrong.</p>



<p>That first $500 is your first win. From there, you can build toward a larger goal, like one month of living expenses, and eventually three to six months.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Dream big and plan with purpose</h2>



<p>Beyond savings for emergencies, you might also be working toward a major milestone in life, such as buying a home, starting a family, or paying for education. Identifying the milestones that are important to you and being deliberate about saving can help focus your efforts and gives you something tangible to work toward.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Rewrite the debt narrative</h2>



<p>Rewriting the debt narrative is all about shifting your mindset: Every payment you make, no matter how small, moves you closer to financial freedom and confidence.</p>



<p>Tackling debt can feel overwhelming, but two popular strategies can make it more manageable. The snowball method involves focusing on your smallest debt first for quick wins and motivation, while the avalanche method focuses on paying off your highest-interest debt first to save the most money over time.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Your story, your future</h2>



<p>Whatever your savings goal, start small and build on that momentum over time. Financial success rarely happens overnight. It’s built through small, consistent habits that add up over time. Every intentional step you take today will help shape the life you want tomorrow.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">PERA resources to build financial confidence</h2>



<p>Our <a href="https://copera.org/financial-wellness-library">Financial Wellness Library</a> contains articles on topics such as saving and planning, creating a budget, and getting ready to retire.</p>



<p>We also offer a variety of <a href="https://copera.org/webinars/">webinars</a>—live and on-demand—to help PERA members better understand their benefits and retire with confidence.</p>



<p><strong>MORE RESOURCES:</strong></p>



<ul>
<li><a href="https://www.copera.org/forms-resources">Forms and Resources</a></li>



<li><a href="https://secure.copera.org/secure/calcs/online-calculators/OnlineCalculators.jsp">Calculators (login required)</a></li>
</ul>


America Saves Week 2026: Do You Have a Savings Plan?


<p>Saving money is always a good idea. Whether it’s for a rainy day or for a major purchase, saving now can help provide flexibility and security when big expenses come down the road.</p>



<p>April 8 through April 12 is&nbsp;<a href="https://americasavesweek.org/" target="_blank" rel="noreferrer noopener">America Saves Week</a>, an annual initiative of the Consumer Federation of America, a nonprofit consumer advocacy organization. It promotes the value of saving money and the importance of making a plan to save.</p>



<p>Beyond peace of mind, here are some additional reasons to consider stashing away some more money this year, if you can.</p>



<h2 class="wp-block-heading">Take advantage of high interest rates</h2>



<p>The Federal Reserve started raising its key interest rate in March 2022 in an effort to fight inflation. Increases continued throughout 2023, and so far this year, the Fed is holding rates steady.</p>



<p>While the Federal Reserve rate mostly pertains to financial institutions, many banks have passed on those higher rates to their customers. That means interest rates on many savings accounts and certificates of deposit (CDs) are higher than they’ve been in years.</p>



<p>Some high-yield accounts, especially those offered by online banks, advertise rates of 5% annual percentage yield (APY) or higher. On a $5,000 account balance, 5% APY can result in $250 in interest earnings over the course of a year. That extra cash from interest could help you reach your goals faster or help you pay for an unexpected expense.</p>



<h2 class="wp-block-heading">You may be eligible for a tax break</h2>



<p>If you make pre-tax contributions to a retirement plan such as an IRA, 401(k), or 457 plan, you may already be reducing your taxable income. But you may also qualify for an additional tax break for a portion of your contributions, based on your income.</p>



<p>The&nbsp;<a href="https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit" target="_blank" rel="noreferrer noopener">Retirement Savings Contributions Credit</a>, also known as the Saver’s Credit, offers a credit between 10% and 50% of eligible retirement plan contributions (for a maximum credit of $1,000 for single filers or $2,000 for joint filers).</p>



<p>For tax year 2023, the maximum income for a single filer to qualify for the Saver’s Credit is $36,500 ($73,000 for joint filers).</p>



<h2 class="wp-block-heading">Boost your retirement security</h2>



<p>PERA members are already setting aside money for retirement with every paycheck. Members in the PERA&nbsp;Defined Benefit&nbsp;Plan can count on PERA to provide monthly retirement income for life, but you’ll never regret having more money available in your golden years.</p>



<p>Whether you’re saving in a traditional savings account, an employer-based plan such as a&nbsp;<a href="https://content.copera.org/retirees/peraplus-401-k-457-plans/" target="_blank" rel="noreferrer noopener">PERAPlus 401(k) or 457 Plan</a>, or even a health savings account (HSA) if eligible, additional savings can provide the flexibility to cover expenses that are hard to plan for. That could include costs like health care—one of the biggest (and growing) expenses—in retirement, long-term care, family needs, and housing.</p>



<p>Colorado PERA will be sharing more information and tips for America Saves Week on social media, so be sure to join the conversation on <a href="https://www.facebook.com/ColoradoPERA/" target="_blank" rel="noreferrer noopener">Facebook</a> and <a href="https://www.instagram.com/coloradopera/?hl=en" target="_blank" rel="noreferrer noopener">Instagram</a>.</p>


America Saves Week: Three Reasons to Save More This Year


<p>The last week of February is America Saves Week. From Feb. 27 to March 2, financial institutions across the country will aim to raise awareness about the importance of saving money and share tips for saving more.</p>



<p>The week comprises five themes:</p>



<ul>
<li><strong>Monday:</strong> Saving automatically</li>



<li><strong>Tuesday:</strong> Saving for the unexpected</li>



<li><strong>Wednesday:</strong> Saving for major milestones</li>



<li><strong>Thursday:</strong> Paying down debt is saving</li>



<li><strong>Friday:</strong> Saving at any age</li>
</ul>



<p>Whatever the goal, setting money aside for the future is vital to financial security, and recent polling shows it’s something that many Americans continue to struggle with.</p>



<h2 class="wp-block-heading">The state of savings in 2023</h2>



<p>Bankrate has been polling Americans about their emergency savings since 2014. <a href="https://www.bankrate.com/banking/savings/emergency-savings-report/" target="_blank" rel="noreferrer noopener">This year’s survey</a>, which was conducted in December, found less than half of respondents could pay for an emergency expense from their savings, and reliance on credit cards is at an all-time high.</p>



<p>If faced with a $1,000 expense for an emergency room visit or a car repair, 43 percent of people told Bankrate that they would use their savings to pay the expense. Twenty-five percent of people said they would use a credit card, which is the highest percentage since the survey began in 2014.</p>



<p>The Bankrate survey also found that people across generations are concerned about their level of emergency savings — particularly younger generations. Bankrate said 85 percent of Generation Z and 79 percent of Millennials are worried about having enough savings to cover a month’s worth of living expenses, compared to 69 percent of Generation X and 53 percent of Baby Boomers.</p>



<p>When it comes to retirement savings, Americans express similar sentiments. According to the <a href="https://www.fool.com/research/average-retirement-savings/" target="_blank" rel="noreferrer noopener">most recent survey from the Federal Reserve</a>, less than half of respondents nearing retirement age said they felt like they were on track. That survey also found that a quarter of all non-retirees had no retirement savings at all.</p>



<h2 class="wp-block-heading">PERA offers built-in options for additional savings</h2>



<p>Colorado PERA members are already saving automatically for retirement with every paycheck. PERA also offers several options for members who want to set aside even more money.</p>



<p>All PERA members have access to the optional <a href="https://www.copera.org/peraplus-401-k-457-plans" target="_blank" rel="noreferrer noopener">PERAPlus 401(k)</a> to set aside extra pre-tax money each month. Some employers also offer the PERAPlus 457 plan. Both plans feature a variety of investment choices as well as <a href="https://peraontheissues.com/pera-offering-new-lifetime-income-options-to-dc-plan-participants/" target="_blank" rel="noreferrer noopener">lifetime income options</a> to make savings go further in retirement.</p>



<p>America Saves Week is a great opportunity to take stock of your savings and make a plan for saving more. If you’re already enrolled in a PERAPlus plan, <a href="https://www.copera.org/member-login-registration" target="_blank" rel="noreferrer noopener">log in today</a> to check your balance, and consider increasing your contributions if you’re not on track to meet your goals.</p>



<p>Follow Colorado PERA on <a href="https://www.facebook.com/ColoradoPERA/" target="_blank" rel="noreferrer noopener">Facebook</a>, <a href="https://twitter.com/ColoradoPERA" target="_blank" rel="noreferrer noopener">Twitter</a> and <a href="https://www.instagram.com/coloradopera/?hl=en" target="_blank" rel="noreferrer noopener">Instagram</a> for more tips during America Saves Week.</p>


Do You Have a Savings Plan for 2023?


<p>The COVID-19 pandemic has had a profound impact on many people’s finances over the past two years – surveys show many people have <a href="https://apnorc.org/projects/economic-consequences-of-the-coronavirus-outbreak/" target="_blank" rel="noreferrer noopener">been saving more money</a>, and the percentage of Americans who say they have savings on hand to cover a $1,000 emergency expense is on the rise. However, that number <a href="https://www.bankrate.com/banking/savings/financial-security-january-2022/" target="_blank" rel="noreferrer noopener">is still less than 50 percent</a>.</p>



<p>The last full week of the month, Feb. 22 to 25, is <a href="https://americasavesweek.org/" target="_blank" rel="noreferrer noopener">America Saves Week</a>, an annual effort by financial institutions across the country to raise awareness of the importance of saving for the future. It’s a good time for a financial “checkup” of sorts – to look at one’s budget and overall finances, and make a plan to save more, if possible.</p>



<p>Saving money is easier said than done, and there’s no one right way to do it. Finding small ways to save here and there can make a huge difference in a person’s financial situation. Each day of America Saves Week highlights a particular savings strategy or theme:</p>



<ul>
<li><strong>Monday | Save Automatically:</strong> One of the easiest ways to save money is to do it automatically — that could mean a regularly scheduled bank transfer, payroll deduction like a 401(k), or using an app to round up debit card purchases and put the spare change in a savings account.</li>



<li><strong>Tuesday | Save for the Unexpected:</strong> “Unexpected” doesn’t have to mean “emergency.” Establishing a fund for unexpected expenses can mean you’ll have money on hand for special occasions, trips, gifts, etc.</li>



<li><strong>Wednesday | Save to Retire:</strong> It’s never too early to start thinking about retirement and your various options for saving money for your golden years.</li>



<li><strong>Thursday | Save by Reducing Debt</strong>: Paying off debit might not be the first thing that comes to mind when thinking about savings, but reducing debt can help in a number of ways, including raising your credit score and reducing the amount of interest and fees you pay each year.</li>



<li><strong>Friday | Save as a Family: </strong>Having conversations with your kids about money and the importance of saving from an early age can help set them up for financial success later in life.</li>
</ul>



<h2 class="wp-block-heading" id="how-pera-helps-its-members-save-for-the-future">How PERA helps its members save for the future</h2>



<p>Saving automatically and saving for retirement are what PERA has been doing for Colorado’s public employees since 1931. Every member of Colorado PERA, whether they’re enrolled in the Defined Benefit (DB) Plan or the Defined Contribution (DC) Plan, saves for retirement automatically with each paycheck.</p>



<p>In 2020, PERA paid more than $4.2 billion in benefits to more than 107,000 DB plan retirees living in Colorado, with an average monthly benefit of $3,204.</p>



<p>PERA also offers the optional <a href="https://www.copera.org/peraplus-401-k-457-plans" target="_blank" rel="noreferrer noopener">PERAPlus 401(k) and 457 plans</a>, which allow members to set aside an additional pre-tax portion of each paycheck. And with <a href="https://peraontheissues.com/pera-offering-new-lifetime-income-options-to-dc-plan-participants/" target="_blank" rel="noreferrer noopener">new lifetime income options</a> in the PERAPlus and DC plans, members have even more options to help make their savings go further in retirement.</p>



<p>When <em>PERA On The Issues</em> asked PERA members about the most useful piece of advice they’d like to pass on to others, several of them mentioned saving in a PERAPlus 401(k) or 457 account in addition to the DB Plan.</p>



<p>“Enroll in the PERA Defined Benefit Plan and start saving in a 401(k) or 457 plan the first month of your employment,” said Rob W., a retiree from Salida.</p>



<p>“If you are a working PERA member, stay in PERA if you are in a job you enjoy doing,” said Mike M., a retiree from Westminster. “A retirement plan such as PERA can provide you with retirement security at a time when you need it in later years.” </p>



<p>PERA will be sharing savings tips on social media throughout America Saves Week, so give us a follow on <a href="https://www.facebook.com/ColoradoPERA/" target="_blank" rel="noreferrer noopener">Facebook</a>, <a href="https://twitter.com/ColoradoPERA" target="_blank" rel="noreferrer noopener">Twitter</a>, and <a href="https://content.copera.org/nearly-1700-people-respond-to-reader-survey/" target="_blank" rel="noreferrer noopener">Instagram</a> to join the conversation.</p>


Give Yourself a Savings Checkup During America Saves Week


<p>The last week of February is <a href="https://americasavesweek.org/" target="_blank" rel="noreferrer noopener">America Saves Week</a>, and now more than ever, it’s vital to have a plan for saving money.</p>



<p>The events of the past year made clear the importance of having money set aside. The COVID-19 pandemic and the resulting shutdowns and layoffs threw a wrench in the finances of families across the country.</p>



<p>Despite the turmoil, surveys have shown that many Americans are actually <a href="https://apnorc.org/projects/economic-consequences-of-the-coronavirus-outbreak/" target="_blank" rel="noreferrer noopener">saving more money</a> and paying down debt during the pandemic. In an informal poll on PERA’s <a href="https://facebook.com/ColoradoPERA/" target="_blank" rel="noreferrer noopener">Facebook</a> and <a href="https://twitter.com/ColoradoPERA" target="_blank" rel="noreferrer noopener">Twitter</a> pages, more than 200 people weighed in and nearly 60 percent of them said they, too, have been saving more.</p>



<p>Increasingly, PERA members know the value of participating in the voluntary PERAPlus 401(k) and 457 plans to boost their retirement savings.</p>



<p>In 2019, the average PERA benefit was $3,153 a month, or $37,836 a year. Reliable lifetime income is a financial cornerstone for many PERA members, but many also plan to have additional income in retirement. To do this, they participate in voluntary retirement savings plans. In 2019, more than 87,000 PERA members contributed to a PERAPlus 401(k) or <a href="https://www.copera.org/peraplus-401-k-457-plans">457 plan</a>, up several hundred from the year before.</p>



<p>The nonprofit Consumer Federation of America organizes America Saves Week every year to encourage even more people to take up good money habits and start saving for the future. Each weekday has its own theme to get people thinking about different aspects of saving.</p>



<p>They are:</p>



<h2 class="wp-block-heading">Save Automatically</h2>



<p>One of the easiest ways to save money is to do it automatically. The PERAPlus 401(k) and 457 retirement plans allow members to make automatic contributions every time they get paid. Those in the plans also have the option to contribute a percentage of each paycheck, rather than a simply flat dollar amount. This makes increasing retirement savings automatic, too, as the amount of savings increases any time pay increases.</p>



<p>Another option for automatic saving is rounding up debit card purchases and putting that extra change into a savings account. A growing number of banks and mobile banking apps offer this hands-off saving feature.</p>



<h2 class="wp-block-heading">Save for the Unexpected</h2>



<p>Many experts recommend having three to six months’ worth of living expenses stashed away, but that’s easier said than done. Starting small and aiming for an emergency fund of $500 can make a big difference, as research has shown that even before the pandemic, many Americans <a href="https://www.cbsnews.com/news/most-americans-cant-afford-a-500-emergency-expense/" target="_blank" rel="noreferrer noopener">couldn’t afford an unexpected $500 expense</a>. Setting aside about $1.37 a day (roughly $42 a month) will result in savings of $500 in one year’s time.</p>



<h2 class="wp-block-heading">Save to Retire</h2>



<p>Members of PERA are already on the path to saving for retirement, as workers and their employers both automatically contribute to the employee’s PERA account each month. PERA invests these funds on behalf of its members in the Defined Benefit (DB) plan in order to provide a monthly benefit that retirees cannot outlive. PERA members in the Defined Contribution (DC) plan have the flexibility to choose their investments to meet their retirement goals.</p>



<p>The voluntary PERAPlus 401(k) and 457 plans, available to those in both the DB and DC plans, offer even more flexibility with the option to set up additional retirement savings and invest that money to plan for a more secure future.</p>



<h2 class="wp-block-heading">Save by Reducing Debt</h2>



<p>Accrued debt like student loans and credit cards can be a big obstacle to saving more money. That’s why it’s important to make a plan to reduce debt wherever possible – a good rule of thumb is to focus on high-interest debt like credit cards first. This results in saving money on interest charges long-term.</p>



<h2 class="wp-block-heading">Save as a Family </h2>



<p>It’s never too early to learn about saving money! Parents should think about setting aside some time to talk to their children about money and the importance of saving. This could even be a great opportunity to set a young child up with a piggy bank, if they don’t already have one.</p>



<hr class="wp-block-separator has-css-opacity"/>



<p>Have a helpful savings tip to share? Leave a comment&nbsp;below!</p>


Tag Archives:

America Saves Week 2026: Do You Have a Savings Plan?

America Saves Week: Three Reasons to Save More This Year

Do You Have a Savings Plan for 2023?

Give Yourself a Savings Checkup During America Saves Week

America Saves Week: Five Savings Tips for Getting Finances on Track

Subscribe to PERA On The Issues