Elevate Your Retirement Readiness With Auto Escalation

When you want to get from the first floor of the shopping mall to the second with less effort and without having to think about it too much, you take the escalator. Auto-escalation is an easy way to help boost your retirement savings over time and meet your financial goals with less thought and effort.

If you have a 401(k), then you may be eligible to sign up for auto escalation. Auto escalation gradually increases your contribution rate over time, without necessitating manual adjustments. A common auto escalation rate is 1% per year up to a certain capped amount. Your employer may have already opted you in for this feature, but if not you can ask your HR representative to enroll you if it’s available at your company.

Investing adequately toward retirement is paramount for long-term financial security and can help you retire on time. Many advisors recommend aiming for saving 15% of your income toward retirement. Auto escalation cultivates more disciplined saving habits and helps your retirement fund grow steadily over time.

If your employer doesn’t offer this feature, set a recurring reminder to increase your retirement plan contribution rate a little bit every time you get a pay raise — or maybe at the beginning of the year or during your annual employee review. This is also an excellent time to review your progress towards your savings and retirement goals with a qualified financial advisor. You may have the service offered through your employer sponsored benefits program.

While auto-escallation systematically and automatically boosts contributions, you retain control over your financial decisions. Whether you need to adjust the rate or opt out temporarily, auto-escalation can accommodate your evolving needs and circumstances.

If you’re looking for a quick and easy way to elevate your retirement readiness, auto-escalation can help get you there.