Telemus Blog

Got a Big Raise? Increase Your Retirement Savings Now or You Might Pay Later.

Written by Barron's | Feb 13, 2020 2:51:28 PM

 

According to a new report by Morningstar, most workers continue to fund their retirement-savings accounts at the same rate after getting a raise, putting their extra income toward a better lifestyle—nicer cars, a bigger apartment or house, better vacations, more dining out.

Getting a big raise is a reason to celebrate.  Handled incorrectly, however, a fatter paycheck could contribute to a less-comfortable retirement.