The value of continued contributions
Why consistency matters in saving
November 21, 2025
If today you were offered a way to create more confidence for your financial future, would you take advantage of it? Your employer offers this through your retirement plan. By making continuous contributions, you could make progress toward your financial future.
Make it automatic
Through plan participation, your retirement contributions are automatically deducted from your paycheck and invested in your account. This can help take the worry out of transferring money, remembering to contribute, or being tempted to spend the money you intended to invest. Chances are, after you start contributing, you may never miss the money.
Focus on the future
If you’re faced with the decision to contribute for the future or have increased cash flow today, consider the implications. What could stopping contributions now mean once you reach retirement age? Additional years in the workforce? Cutting back your retirement goals? Retirement is meant to be celebrated, so consider this example when balancing current and future needs.
Taking a break takes a toll
Taking a break from contributing to the plan could put your financial future at risk. Look at the impact a five-year and a 15-year break could have on your projected retirement savings balance.
| Annual $2,000 contribution | Years 1–5 | Years 6–10 | Years 11–20 | Years 21–40 | Account value after 40 years |
|---|---|---|---|---|---|
| No break | $2,000 | $2,000 | $2,000 | $2,000 | $331,915 |
| 5 year break | $2,000 | $0 | $2,000 | $2,000 | $261,883 |
| 15 year break | $2,000 | $0 | $0 | $2,000 | $171,470 |
Note: All numeric examples and any individuals shown are hypothetical and were used for explanatory purposes only. Actual results may vary.
Take advantage of dollar cost averaging
Dollar cost averaging can help take the guesswork out of when to invest because you invest the same amount of money in the same investments on a regular basis. When you participate in the retirement plan, you contribute the same amount to your account each pay period, and that amount is used to buy shares of the investments you’ve selected.
When you make regular fixed contributions to an investment, the number of shares you are able to buy will vary based on the investment’s share price. When the price is high, you purchase fewer shares. When the price is low, you purchase more. When the market is fluctuating, the average cost of each share you buy over a specific time period will generally be lower than the investment’s average share price for the same period.
How dollar cost averaging works
| Regular investment | Share price | Shares acquired | |
|---|---|---|---|
| Period 1 | $100 | $10 | 10 |
| Period 2 | $100 | $5 | 20 |
| Period 3 | $100 | $8 | 12.5 |
| Period 4 | $100 | $5 | 20 |
| Period 5 | $100 | $10 | 10 |
| Total | $500 | 72.5 |
The average cost per share ($500 ÷ 72.5) = $6.90. The average price per share ($38 ÷ 5) = $7.60.
Note: All numeric examples and any individuals shown are hypothetical and were used for explanatory purposes only. Actual results may vary
Neither Voya® nor its affiliated companies or representatives provide tax or legal advice. Please consult a tax adviser or attorney before making a tax-related investment/insurance decision.
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