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Strategies for Saving

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Follow these helpful guidelines to get started saving for retirement.1

If you're starting to save in your 20s:

  • Try to set aside 10%–15% of your income for retirement.
  • Resist the temptation to cut back on retirement savings.
  • Remember that even small contributions can grow substantially over time.

If you're starting to save in your 30s:

  • Try to save 15%–25% of your income for retirement.
  • Track your spending patterns to see where you might cut back.
  • Put as much of your bonus as possible into your retirement savings.
  • Continue to fund your retirement accounts—even while saving for your children's college expenses and paying down your mortgage.

If you're starting to save in your 40s:

  • Try to save 25%–35% of your income for retirement.
  • Max out your 401(k), SEP-IRA, or other business retirement plan.
  • Contribute to a Traditional IRA or a Roth IRA, if eligible, and consider a deferred variable annuity.
  • Look for ways to cut back on unnecessary expenses.

If you're starting to save in your mid-40s or later:

  • Try to set aside at least 35% of your income for retirement.
  • Max out all of your tax-deferred retirement account options.
  • Contribute to a Traditional IRA or a Roth IRA, if eligible, and consider a deferred variable annuity.
  • Consider postponing retirement for a few years, or working part-time to supplement your retirement income.

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Variable annuities are sold by prospectus only. Before purchasing an annuity, you should carefully read the prospectus and consider its investment objectives and all the risks, charges, and expenses associated with the annuity and its investment options. For this and other information, call Charles Schwab & Co., Inc. at 888-311-4889 to request a prospectus, or you may view one at Schwab.com.