Plan today to enjoy financial freedom in the years ahead
Preparing for retirement helps you build confidence and peace of mind for the future.
The choices you make today, saving regularly, investing wisely and planning intentionally, shape the quality of your future. Through trusted partners like TIAA and UW Human Resources, you have access to personalized planning tools, retirement education and expert advice to guide every step of your journey.
Why planning early matters
The earlier you begin saving for retirement, the more time your money has to grow through compounding. If you’re getting a later start, don’t worry, it’s never too late to begin. Increasing your contributions, taking advantage of employer programs and making smart investment decisions can help you catch up efficiently.
Know what you’ll need
Retirement looks different for everyone, and so does the amount you’ll need. A general rule of thumb is to aim for 70–80% of your pre-retirement income to maintain your standard of living, though your actual needs depend on lifestyle, location and healthcare costs.
Start by estimating your expected expenses: housing, transportation, healthcare, leisure, and daily living. Then, compare that with your projected retirement income from all sources. Use Fidelity’s Retirement Planning Tools or TIAA’s Retirement Advisor to see how your savings are tracking toward your goals.
Understand your UW retirement options
UW offers several retirement savings programs for faculty and staff, designed to meet a range of career stages and employment types. These include:
- University of Washington Retirement Plan (UWRP): A 403(b) plan with employer matching contributions.
- Voluntary Investment Program (VIP): An optional 403(b) plan for additional savings with pre-tax or Roth (after-tax) contributions.
- Deferred Compensation Program (DCP): A 457(b) plan available to eligible UW employees.
Each plan has its own rules, contribution limits and investment options. Visit the UW Retirement & Savings Plans webpage for full details.
TIAA offers free consultations, webinars and retirement planning sessions tailored to UW employees, from understanding your plan to projecting lifetime income and navigating Social Security.
Saving and investing for retirement
Your retirement portfolio should evolve as you do. Early in your career, focus on growth through stock-based investments. As you approach retirement, gradually shift to more stable, income-focused assets like bonds and fixed annuities.
If you can, contribute 10–15% of your salary to retirement accounts. Increase your contribution each year or whenever you receive a raise. Many employees find success by setting up automatic percentage increases in their UW plan.
If you’re 50 or older, take advantage of “catch-up” contributions, which allow higher annual limits in 403(b) and 457(b) plans. These small adjustments can make a big difference over time.
Planning for healthcare costs
Healthcare is one of the most significant expenses in retirement. Planning for it early ensures peace of mind later.
Consider the following options to save for healthcare expenses:
- Health Savings Accounts (HSAs): If you have a high-deductible health plan, contributions to an HSA grow tax-free and can be used for medical expenses at any age.
- Medicare Planning: Understand when to enroll and how it coordinates with other coverage.
- Long-Term Care: Evaluate options early, premiums are lower and coverage broader when purchased in midlife.
Watch and learn
Find a variety of webinar recordings in our Financial Education playlist on YouTube.