The Importance of Time

Time really is money when it comes to retirement savings. The sooner you start saving for retirement, the closer you’ll be to reaching your goals.

Example #1: Starting at age 21, you contribute $1,300 a year into a tax-deferred retirement plan for nine years. You leave the balance to compound for another 35 years, earning an 8 percent annual return. The result: A nest egg worth $250,301.

Example #2: Starting at age 35, you contribute $1,300 a year into a tax-deferred retirement plan for 30 years, also earning an 8 percent annual return. The result: A nest egg worth only $153,683.

Despite having contributed three times more money in Example #2, your nest egg is $96,618 less than if you had started saving at age 21. The cost of delaying your savings can mean thousands less for you in retirement.

Many professionals suggest saving 5 to 10 percent of your net annual income for retirement purposes, but if that’s overwhelming, start saving in small increments. Put time and the power of compounding to work building your nest egg.

Group variable annuities are issued by The Ohio National Life Insurance Company. Product availability varies by state. Issuer not licensed to conduct business and products not distributed in AK, HI or NY.

With respect to non-registered group variable annuities, your representative can provide you with a participant disclosure form for more complete information about the contract.

Group variable annuities are long-term investment vehicles designed to accumulate money on a tax-deferred basis for retirement purposes. Premature distributions may be subject to withdrawal charges or a market value adjustment. Distributions may also be subject to ordinary income tax and, if taken prior to age 59½, a 10 percent federal tax penalty may apply. Upon retirement, group variable annuities may pay out an income stream of a series of payments or a lump sum. If you die during the accumulation or payout phase, your beneficiary may be eligible to receive any remaining account value.

There is no additional tax-deferral benefit for annuities purchased in a tax-qualified plan, which is already afforded tax-deferred status. An annuity should only be purchased in a qualified plan if you value some of the other features of the annuity and are willing to incur any additional costs associated with the annuity.

As with any investment, investing in variable portfolios involves risk, including possible loss of principal.


	The Importance of Time Time really is money when it comes to retirement savings. The sooner you start saving for retirement, the closer you’ll be to reaching your goals. Example #1: Starting at age 21, you contribute $1,300 a year into a tax-deferred retirement plan for nine years. You leave the balance to compound for another 35 years, earning an 8 percent annual return. The result: A nest egg worth $250,301. Example #2: Starting at age 35, you contribute $1,300 a year into a tax-deferred retirement plan for 30 years, also earning an 8 percent annual return. The result: A nest egg worth only $153,683. Despite having contributed three times more money in Example #2, your nest egg is $96,618 less than if you had started saving at age 21. The cost of delaying your savings can mean thousands less for you in retirement. Many professionals suggest saving 5 to 10 percent of your net annual income for retirement purposes, but if that’s overwhelming, start saving in small increments. Put time and the power of compounding to work building your nest egg. Group variable annuities are issued by The Ohio National Life Insurance Company. Product availability varies by state. Issuer not licensed to conduct business and products not distributed in AK, HI or NY. With respect to non-registered group variable annuities, your representative can provide you with a participant disclosure form for more complete information about the contract. Group variable annuities are long-term investment vehicles designed to accumulate money on a tax-deferred basis for retirement purposes. Premature distributions may be subject to withdrawal charges or a market value adjustment. Distributions may also be subject to ordinary income tax and, if taken prior to age 59½, a 10 percent federal tax penalty may apply. Upon retirement, group variable annuities may pay out an income stream of a series of payments or a lump sum. If you die during the accumulation or payout phase, your beneficiary may be eligible to receive any remaining account value. There is no additional tax-deferral benefit for annuities purchased in a tax-qualified plan, which is already afforded tax-deferred status. An annuity should only be purchased in a qualified plan if you value some of the other features of the annuity and are willing to incur any additional costs associated with the annuity. As with any investment, investing in variable portfolios involves risk, including possible loss of principal.