Generations of Savings

There’s a rule of thumb when it comes to retirement: Save at least eight times your ending salary to create a comfortable nest egg, which should last about 25 years.That amount, provided by Fidelity, one of Duke’s investment carriers, may be intimidating, but a satisfying quality of life in retirement can be achievable if saving is spread over a career. The best method is to start saving early when small amounts of money, invested over a long time, have a bigger payoff due to the power of compound interest, said Sylvester Hackney, associate director for Duke Benefits.“We see that employees start paying attention to retirement around age 55, instead of when they first begin employment,” he said. “Conflicting priorities such as paying off college debt or saving for a home always seem to get in the way. It’s very important to make saving for retirement a key priority at every career stage.”Duke employees representing Millennial, Gen X, Baby Boomer and Veteran generations share their experiences saving for retirement. In each photo, they pose with an item representing their plans for the future: reading Shakespeare’s works, learning photography, playing golf and restoring old cars.Tyler Lee, 27

Staff assistant, Duke Institute for Brain SciencesMillennial When and why did you start saving?When I turned 16, my parents helped me start a retirement account, and my mom said ‘this will be a gift so you can start seeing it grow over the years.’ I was working as a waitress and hostess at a country club, and I’d squirrel away a little bit of every paycheck into my retirement account. I’d put away about $10 a paycheck. Once I started at Duke, I allocated money toward a new account because I realized I needed to be even more serious about saving because I was making ‘real money.’ Now I put away a little over $200 a month. I’m grateful my parents started me early because I now realize all the growth I’ll have in my account over the years. I already have almost 10 years of saving, which is going to be a big deal in years to come.What would you change about your saving habits?I wish I knew more about the markets. I’m not a math person, but if I were, I could pay more attention to what’s going on with my money – what’s good and what’s bad. One of these days, I want to sit down and really learn it all.Cassandra Taylor, 48

Financial guidance counselor, Duke Credit UnionGeneration XWhy did you start saving? I always contributed to my retirement accounts when I worked for other credit unions, and it was actually one of the first things I looked into when I got to Duke.When I started working in 1989, it was automatic where I worked that we contribute to a 401(k), and then in my mid-20s, I had a CEO of another credit union encourage me to start saving. I didn’t really understand it at that time, but I saw my 401(k) growing and got excited enough to continue.What saving advice would you share?I tell people all the time to save something. Anything. Just start from the minute you get here, even if it’s just $10 or $20. It’s important to be mindful of the Duke benefit and prepare. I was tempted at times to withdraw and borrow against my account, but I didn’t do it. When I moved to North Carolina, I wanted to purchase a home, and I thought that was the best way to do it, but through research and talking to people who knew more about retirement savings, I was advised against it.Erick Larson, 62

Senior IT analyst, Trinity Office of Technology Services Baby BoomerHow are you saving? If it’s automated, and you can discipline yourself to leave it alone, the savings will just take on a life of its own. Another thing that works for my wife and I are the lifestyle decisions that we’ve made. We both had parents who got their start with Depression-era parents, so they had a frugal mindset. We grew up with that. By saving first and living within our means, we have been able to enjoy life and prepare for the future. How do you and your wife plan together for retirement? She was saving when I met her, and we continued to save together. As a result of our early choices, we’ll retire with a good income and significantly reduced expenses. We’ll be able to focus on the things we want to do rather than the things we have to do in retirement. William R. Hester, 70

Bus driver, Parking and Transportation Services VeteranHow are you contributing to your retirement fund?I’m using VALIC through Duke. I got money coming out of every paycheck going into that. I also got a savings plan at Duke Credit Union. Why is it important to save?Every month, my daddy would wait for that check. And I don’t know what it was, it wasn’t much, and the next day it was gone. I don’t want to be like that. I want to go places. I don’t just want to sit there and wait on God, you know what I mean? And if you got no money, nothing saving, ain’t nothing you can do, and I don’t want to run to the mailbox every first of the month.  What are your plans after you retire? I got two to five old cars at home, and I like working on them. I want to build me a hot rod. I’ve been wanting one … It’s a ‘34 Chevrolet, and I want to put a V8 engine in it and a four-speed transmission and put nice upholstery and a nice paint job on it. Most guys got ‘em stored away. I want to drive it every day. Read More