The campaign is aimed at individual investors, plan sponsors and financial advisers, and The Hartford estimates it will reach 1.6 million retirement plan participants. It consists of web-based education tools and an emphasis on the benefits of matching contributions and tax-deferred savings. The Hartford notes that 2% saved over 30 years could add up to more than $83,000.
The government reduced Social Security payroll taxes by two percentage points from 6.2% to 4.2% in 2011 and 2012 on wages up to $106,500. That means someone with an annual salary of $50,000 would receive an extra $1,000 in take-home pay this year and next, The Hartford noted.
“The reduction in Social Security taxes is a perfect opportunity for retirement plan participants to redirect these additional funds into their retirement accounts,” said E. Thomas Foster, Jr., vice president and national retirement spokesman for The Hartford. “It’s a painless way to enhance retirement savings and help build a more secure financial future.”
“For those who haven’t been taking full advantage of their employer match on retirement savings, 2% can net 3% or 4%,” Foster said. “Many employers match employee retirement savings up to a specified ceiling. Employees who do not take advantage of this are missing out on investments that can automatically provide a substantial return.”
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