Most financial experts estimate you’ll need between 70-90% of your pre-retirement income to maintain your standard of living in retirement. Of course, how much income you need during retirement depends on several factors – including what you want to do (travel, buy a second home, etc.) and when you retire (which affects the number of years you’ll need your savings to last).
To prepare for a comfortable retirement, you should plan on having retirement income from several sources.
Retirement contributions to the North Carolina Teachers’ and State Employees’ Retirement System are required of all full-time College employees. Retirement benefits, and methods of calculating retirement allowances, may be found online at the NC Retirement System’s website.
Social Security benefits will also figure into your plans for retirement income, though experts estimate that Social Security only replaces about 40% of your pre-retirement income.
When certain criteria is met, as an employee, you may be eligible to participate in supplemental retirement plans such as 401(k) and 457 plans. Supplemental plans share certain similarities, but each has its features and rules. For more information, including eligibility criteria, contact WPCC’s Human Resources department.
NC 401(k) Plan: The State’s 401(k) Plan is a supplemental retirement plan that meets the requirements of Section 401(k) of the Internal Revenue Code. The Plan is sponsored by the State of North Carolina and governed by the Department of State Treasurer and the Plan’s Board of Trustees. Under the NC 401(k) Plan, there are a number of investment options available including bank investment options (insured and guaranteed) and no load mutual funds. The plan also includes a loan provision providing employees with access to these funds while employed. More information is available by contacting the Plan Administrator.
457 Deferred Compensation Plan: The State of North Carolina 457 Deferred Compensation Plan, provided under Section 457(b) of the Internal Revenue Code, was created by NC State Statute and is overseen by a Board of Trustees through the Department of Administration. Tax sheltered contributions may be invested in either fixed return or variable return options under this Plan. Certain criteria must be met for this plan to be available to temporary or part-time employees.