Step Up Your Savings
With merit increases taking effect on the April 10 paycheck, should you consider increasing your contribution to the 401(k)? Saving just an additional 1% or 2% per paycheck now may make a big difference in your retirement nest egg later. Doing so when you receive a pay increase helps you save more without feeling the pinch of more coming out of your check than normal.
IT ADDS UP
Let’s say you make $40,000 a year. Look how approximately $33 or $66 more a month can add up.
SEE WHAT A 1% or 2% INCREASE LOOKS LIKE FOR YOU
Check out the 401(k) Contribution Estimator to model your contribution rate. By entering a few pieces of personal information (such as salary, age, years of service, and contribution percent), you can quickly see what your new per paycheck deduction would be in addition to the applicable match from Texas Health.
HOW TO CHANGE YOUR CONTRIBUTION
Contact Empower Retirement (formerly JP Morgan) at 1-800-345-2345 or go to www.retireonline.com. You can change your contribution percentage at any time. However, the next paycheck you can change is the one on April 24. To affect this check, complete changes with Empower Retirement by 3pm on April 16.
OTHER CHANGES THIS PAY PERIOD
You will notice, as a result of the merit, your benefits may change as well. With a change in pay, both your benefit amounts and your benefit premiums will increase. Most employees will see a minimal change in premiums on benefits such as life insurance, AD&D, and disability. If the merit raises your base salary into a higher bracket for medical, you could see an increase there as well. Check out the medical rates and rates for all other benefits.
If you have any questions about your benefits, email THRBenefits@texashealth.org at any time. If you have questions about your merit, you can email THRCompensation@texashealth.org to reach a Texas Health Compensation Specialist.
This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for investment, accounting, legal or tax advice.