Let's be honest, saving more for retirement is probably on your to-do list, right next to working out, drinking more water, and cleaning out that junk drawer. But it's easy to keep putting off. Next month turns into next year. A year turns into a decade. A decade into a career. And the longer you wait, the more growth you may miss out on. That's where MO Deferred Comp's Rate Escalator tool, previously known as the Auto-Increase Tool, can help. Rate Escalator automatically increases your paycheck contribution each year, by an amount and during a month you choose. Then it just happens. No reminders. No waiting for the "right time." Here's an example. Say you're new to the state, saving $25 per semi-monthly paycheck. You'd like to reach $200, but jumping there all at once isn't realistic right now. With Rate Escalator, you can increase your contribution by $25 each year until you hit your goal. Year one: $25. Year two: $50. Year three: $75. By year eight, you're automatically contributing $200 per paycheck—without having to remember to make the change yourself. Your savings grows along the way, too. Assuming a 6% annual rate of return, you could have an estimated $25,714 saved by year eight. Keep contributing $200 per paycheck through year 25, and your balance could grow to roughly $212,422. If you saved only the flat $25 per semi-monthly paycheck for 25 years, your balance would only be $ 34,650. That’s a HUGE difference and proof that Rate Escalator really works! Best part? You only make the decision once. Log in to your MO Deferred Comp account at modeferredcomp.org or the Voya Mobile App. Choose your yearly increase amount and the month you want it to happen. Then let Rate Escalator do the rest. Ready to make saving more a no-brainer? Log in and set up Rate Escalator today.
