You May Need to Supplement Your Retirement Savings

In addition to your UC primary retirement benefits, you may need to save more money to have the standard of living you want in retirement. The voluntary UC Retirement Savings Program offers a convenient way to save voluntarily with tax advantages. Here’s what you need to know.

Why save more?                   

While it may seem like UC’s primary retirement benefits can meet all of your needs, keep in mind that the average UC retiree has roughly 20 years of service. If you’re like many people, you’ll work for several employers during your career, so you might not be at UC long enough to build your primary retirement benefits to a level that can meet your needs. In fact, 56% of Americans are behind on their retirement savings and have less than $10,000 saved.*

What does this mean for you? To maintain the standard of living you’re used to, you may need to save beyond your UC primary retirement benefits. And that’s where UC’s voluntary Retirement Savings Program comes in.

Get to know the plans

The UC Retirement Savings Program is made up of three plans: the 403(b), 457(b), and DC Plans.

  • The 403(b) and 457(b) Plans let you add to your retirement savings with pretax contributions. Taxes are deferred until you withdraw the money.
  • The DC Plan also lets you add to your retirement savings, but with after-tax contributions. Taxes on your investment earnings are deferred until you withdraw the money.

What do they have in common?

All three share key similarities:

  • Almost all UC employees can contribute, and the plans accept eligible rollovers from previous employer retirement plans and individual retirement accounts (IRAs).
  • You contribute directly from your paycheck.
  • You decide where to invest your money, choosing from a menu of available options. The value of your account will depend on the amount you contribute and on the performance of the investments you select.
  • Your account is portable, so you can normally rollover part or all of your account balance into another employer’s retirement plan or an IRA whenever you are no longer working at UC.

How are they different?

The key difference between the plans is how and when you can get access to your money. If you have an extreme financial need while you are working for UC and have to tap your retirement savings, the UC 403(b) offers you more options

Check the UC Retirement Benefits tab for more details on how each plan works.

* “1 in 3 Americans Has Saved $0 for Retirement.” Go Banking Rates. March 14, 2016. 

This information is intended to be educational and is not tailored to the investment needs of any specific investor.

Distributions are subject to plan rules. Please refer to the Summary Plan Descriptions for important details.

Keep in mind that investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money.

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