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We Just Don’t Save Enough

For military members, many will leave the service after 2-8 years with little or no savings to show for it. Consider the following figures.

  • “An increased percentage of workers report they have virtually no savings and investments. Among RCS workers providing this type of information, 27 percent say they have less than $1,000 in savings (up from 20 percent in 2009). In total, more than half of workers (54 percent) report that the total value of their household’s savings and investments, excluding the value of their primary home and any defined benefit plans, is less than $25,000.” (March 9, 2010 – EBRI.com)
  • “Overall, the participation rate (in the Thrift Savings Plan) for Active Duty members was 36.9 percent in February (2009) compared to 36.3 percent in January (2009).” – (TSP Governing Board Minutes, February 2009.)

Between frequent PCS moves, deployments, and life expenses common for those in their twenties and thirties, retirement savings can seem like the last thing to think about instead of the first.

If, however, you begin to allocate just $25 a week to your Thrift Savings Plan, if you earn 8% interest, you’ll have over $13,900 in your account after 8 years of service. If you left the military, but continued to make the same savings for the next 30 years, you’d have more than $287,000!

Consider contributing a few bucks to your TSP right now. Add your raise in January for some painless investing. You’ll be glad you did!

Discussion

11 thoughts on “We Just Don’t Save Enough

  1. This comment has been removed by a blog administrator.

    Posted by 徐俊賴靜雯賢 | July 29, 2010, 1:21 am
  2. You are absolutely right. You can even get more accurate data. As of April 2010, only 38.5% of the military participates in TSP. The rates are just dismal for something so great an easy.

    Posted by Hank | July 29, 2010, 4:12 pm
  3. This comment has been removed by a blog administrator.

    Posted by 文王廷 | August 1, 2010, 2:26 am
  4. This comment has been removed by a blog administrator.

    Posted by 家唐銘 | August 4, 2010, 5:53 am
  5. 面對光明,陰影就在我們身後!加油哦!............................................................

    Posted by 建邱勳 | August 6, 2010, 9:06 pm
  6. This comment has been removed by a blog administrator.

    Posted by 偉曹琬 | August 9, 2010, 11:02 am
  7. 我的痛苦會停止,但求我的心能征服它。................................................

    Posted by 鄭雅雯 | August 12, 2010, 1:27 am
  8. This comment has been removed by a blog administrator.

    Posted by 蔡曼鄭美玉屏 | August 14, 2010, 8:12 am
  9. Never put off till tomorrow what may be done today..................................................................

    Posted by 316 | August 16, 2010, 8:17 am
  10. Hello Lee, good blog — I'm an editor for military.com and would be interested in potentially working out a content partnership. If you could contact me at ho.lin@military-inc.com it would be much appreciated. Regards, Ho Lin

    Posted by Ho Lin | August 30, 2010, 7:13 pm

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