Available on Pivotal Select segregated funds, the Automatic Payment Increase Option is a disciplined approach to automatically increasing your pre‑authorized payments on an annual basis. Small scheduled increases are a simple but effective way to accelerate your savings.
Why should I increase my savings each year?
Increasing your savings each year – even by a small amount – can have a substantial impact on your retirement savings. Some reasons to increase your savings include:
- You can reach your retirement savings goals in a shorter period of time, potentially fast-tracking the start of your retirement.
- As inflation increases, everyday purchases become more expensive over time. Saving more each year helps to offset the impact of inflation on your retirement savings.
- When your income levels rise due to a raise or promotion, your savings level should increase to keep your retirement savings in line with your increased standard of living.
Here’s how it works:
- Make regular deposits: Establish pre-authorized payments on your Pivotal Select™ policy. You can choose to have the payments come out on a monthly, bi-weekly, or semi‑monthly basis.
- Elect the Automatic Payment Increase Option: Indicate the amount your payments will increase by each year, either as a dollar amount or a percentage.
- Watch your savings grow! Your pre-authorized payments will be withdrawn according to your instructions, and will automatically increase every January by the amount or percentage you’ve chosen. If at any time you want to stop or decrease your payments, simply contact your financial advisor or Equitable Life’s customer service team.
The Automatic Payment Increase Option is an excellent way to supercharge your savings strategy, and position you for a more secure financial future.