The Retirement Summit: Reaching the Top with Small Increases

Saving for retirement doesn’t have to mean big sacrifices today. In fact, the real magic comes from small, steady increases over time. Think of it like climbing a mountain, you don’t leap to the summit; you take one step at a time. By gradually raising your contribution rate, you give compound growth more fuel to work with, and your retirement savings can grow significantly faster than if you stayed at the same level. 

Here’s an example of how those small increases can really add up: 

Hypothetical example for illustrative and educational purposes only. Assumes $50,000 starting salary, 6% initial contribution rate, 1% annual increase (capped at 15%), and a 7% annual rate of return. Actual results will vary, and this is not intended to predict future performance.

The lesson is simple: consistency beats intensity. Even if you can’t contribute the maximum right away, making small annual increases keeps you moving forward and builds momentum. Your future self will thank you for starting small, staying steady, and letting time and compound growth do the heavy lifting.

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