| BUSINESSWEEK ONLINE : DECEMBER 13, 1999 ISSUE | ||||||||
| ||||||||
 | ||||||||
| BUSINESSWEEK INVESTOR
Why You Don't Want to Stop Saving Here is the impact on retirement savings under four typical scenarios a woman faces. This hypothetical woman started working in 1982 at age 25 for an annual salary of $25,000. While she is working, she gets annual 11% raises until 1992, then 4% a year thereafter; contributes 6% annually to her 401(k) with a 50% match from her employer, and earns 10% annually on her portfolio. SCENARIO 1 Works until age 65, ending with a salary of $242,986. SCENARIO 2 Leaves her job at age 35, making $75,000. Returns to work at 42 and continues until 65, when she's earning $160,207. During her seven-year hiatus, she contributes $1,800 annually to an individual-retirement account. SCENARIO 3 Same as Scenario 2, except no savings contributions during her time off. SCENARIO 4 Quits working permanently at 35 and doesn't contribute to a savings plan.
401(K) COMPANY MATCH ENDING BALANCE
SCENARIO 1 $292,502 $146,251 $3,152,119
SCENARIO 2 193,536 91,368 2,257,766
SCENARIO 3 182,736 91,368 2,107,293
SCENARIO 4 30,314 15,157 1,325,823
DATA: DELAWARE INVESTMENTS
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
|  |
 | |
RELATED ITEMS Women and Retirement: Time to Get Aggressive TABLE: Investor Guidance TABLE: Why You Don't Want to Stop Saving Making the Street Wise to Women INTERACT E-Mail to Business Week Online | |||
