Employer Update

Visitors to myVRS Financial Wellness report that worries about impending retirement are their biggest financial stressor. About 16% named it as their top concern, above other anxiety producers like debts and bills.

During October, designated as National Retirement Security Month, consider sharing VRS resources to help employees strengthen their retirement security.

You can cut and paste the following information into emails or other messages to employees this month. Using email, social media or other channels, you can promote all at once or send individual items, perhaps with other communications. (For more promotional ideas, check out this toolkit.)

Generate a Retirement Forecast

To find out whether you’re on track for the retirement you envision, start by logging into your myVRS account.

Once logged in, use the myVRS Benefit Estimator to generate estimates of your monthly VRS benefit in retirement. Explore different scenarios. Can you afford to retire at 60? What happens if you work longer? Take time to experiment with different approaches.

Next, use the myVRS Retirement Planner to set your income-replacement goal and enter your expected income sources in retirement, including your VRS pension, Social Security and other savings, such as an IRA or defined contribution retirement account. Most experts suggest that in retirement you’ll need to replace at least 80% of your current income.

Save your plan in your myVRS account for future reference and to help you stay on track to meet your income goals at retirement. Update the plan when your income or employment situation changes.

Tap Into Learning Opportunities

If you’re unsure whether you’re saving enough for retirement, take advantage of financial planning assistance from Voya Financial, which partners with VRS to administer deferred compensation plans like the Hybrid 457 and Commonwealth of Virginia 457 and Cash Match plans. Schedule a free 30-minute financial coaching conversation with Voya’s Be Ready team to discuss retirement income planning or other financial needs you may have.

Another option: Check out retirement-focused articles and videos available through myVRS Financial Wellness. Available resources help you think through your retirement lifestyle plans, consider healthcare and tax issues, and ponder where to live. Start with the Retirement topics page.

Increase Your Retirement Savings

Members of the Hybrid Retirement Plan have an added incentive for increasing their voluntary contributions to the DC component of the plan. Making the maximum 4% voluntary contribution earns you the full 2.5% employer match.

Log into your DCP account to increase your voluntary contribution. If you can’t contribute the maximum 4% right away, you can use the Smart Step option to make gradual increases in your contributions over time.

If you’re wondering if your budget can accommodate saving more, be sure to check out the Paycheck Calculator tool. The paycheck calculator allows you to compare your current retirement savings contribution level to three other contribution levels. This comparison quickly illustrates how various contribution levels can impact your take-home pay.