Yes, now is the time
No matter where you are in life, one thing will always be true — there’s never a better time than now to start on a savings program. Why? Right now, you have access to free money from Bloomin’ Brands. And, now is always better than later so that your savings have time to grow due to a little something called compounded growth potential — which we will get into in a bit.
Tip 1: Don’t miss out on free money
Bloomin’ Brands matches 100% of the first 3% of your contributions, plus 50% of the next 2%. Money deferred under the catch-up contribution allowance will not be matched. How does free money sound? It’s a no-brainer right?
But believe it or not, many of your fellow employees are leaving money on the table — by not participating in the 401(k) Savings Plan or by contributing too little to earn the full match. Make sure to contribute 3% of your pay to get the dollar for dollar match — and contribute 5% of your pay to get the additional 50% match. That’s like getting a dollar-for-dollar match equal to 4% of your pay.
How much of a difference does it really make? Check this out…
|Jon defers 2%||Amy defers 6%|
|Team Member's contribution||$800||$2,400|
|Missed company contribution||$800||$0|
|Total contributed to the 401(k)||$1,600||$4,000|
Tip 2: Take advantage of compounded growth potential
Another great reason to invest in your 401(k) is compounded growth potential. Not only do you get to keep more of your money working for you, but your contributions, your Bloomin’ Brands contributions, and any earnings are reinvested back into your account to help your money grow even more. And the longer it stays in your 401(k) account, the harder each dollar works for you.
Check this out. Jon and Amy both make $40,000. Both started working at Bloomin’ Brands at age 25. Amy starts saving right away and contributes 6% of her pay until she is 65. Jon puts off signing up for the 401(k) until he’s 35, but decides to contribute 10% of his pay, saving for 30 years until retirement. Who is better off at age 65?
|Total contributions*||Total at age 65**|
Total contributions, 6% of pay
(40 years, from age 25 to 65)
Total contributions, 10% of pay
(30 years, from age 35 to 65)
* Includes employee contributions and BBI matching of 100% of the first 3% of the employee’s pay contributed to the Plan, plus 50% of the next 2%. Ongoing matching contributions are currently in place, but are subject to change in the future.
** Assumes 6% average annual investment earnings.
As you can see, Amy paid less out of her pocket and wound up with a lot more at retirement — all because her money was invested longer.
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