How saving $5 a week can add up.

 If you don’t think you can afford retirement today, think again. When you save through your employer’s retirement plan, even small amounts can add up over time. For example, saving just $5 a week—roughly the cost of a cup of gourmet coffee or a magazine—could add up to $30,000 over 30 years. That’s the power of compound earnings. And it could make a big difference in the kind of lifestyle you might have in retirement.

Prepare today for tomorrow

You remember the fable about the ant and the grasshopper.The ant patiently collected small bits of food throughout the year. The grasshopper just sat back and enjoyed himself—without a single thought for the future. When winter came, the ant was prepared—but the grasshopper was not.

Small amounts can add up

Taking steps today to prepare for tomorrow is important for you too. By joining your employer’s retirement plan, you will be taking the first step in the right direction. The next step is to save as much as you can. Fortunately, your plan helps you save regularly. So, like the ant, you can put away a little at a time. Even small amounts can add up and make a big difference. Just look at the chart below. It shows how $5 a week (or $20 a month) can increase in value over time. If a $5 investment grows at 7% a year, compounded monthly, you’ll have $30,006 after 30 years!


 *Chart assumes an 7% annual return with earnings compounded monthly. Chart is for illustrative purposes only and does not represent the performance of any specific investment option.

Start saving now

What’s the moral of the story? Prepare like the ant. Start saving for the future today, and increase your plan contribution when possible. Even a small boost in savings—1% or 2%—can make a big difference in the long run. For more information check with your plan’s website or speak with a plan representative.

 This article has been prepared by T. Rowe Price Retirement Plan Services, Inc., for informational purposes only. T. Rowe Price Retirement Plan Services, Inc., its affiliates, and its associates do not provide legal or tax advice. Any tax‑related discussion contained in this article, including any attachments, is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding any tax penalties or (ii) promoting, marketing, or recommending to any other party any transaction or matter addressed herein. Please consult your independent legal counsel and/or professional tax advisor regarding any legal or tax issues raised in this article.