Members who can count on a pension program, as well as Railroad Retirement, Social Security, CalPERS or a similar benefit program, are two-thirds of the way to where they want to be when they retire. To complete the picture, experts agree some kind of investment income is needed.

The UTU Insurance Association (UTUIA) provides members and their families with three great options specifically designed  with retirement in mind. “All three products have a guaranteed interest rate, and unlike the risk you take gambling on the stock market, you’ll never lose your principal,” said Director of Insurance Administration Sandra Kranick.

These three products include the Roth and Traditional IRA, anda Flexible Premium Annuity. Interest earned is tax-deferred until such time as you start making withdrawals, which enhances growth potential. Providing certain conditions are met, interest earned in a Roth IRA may be tax-free.

An individual must have earned income to contribute to a Roth or Traditional IRA. The contribution limit is $3,000 for tax year 2004 for individuals under age 50 and $3,500 for individuals who have reached age 50 before the close of the tax year. These amounts will increase in tax years 2005 through 2008.

Unlike the Roth and Traditional IRA, it is not necessary to have earned income to contribute to a Flexible Premium Annuity, and there is no limit with respect to the amount of money that can be contributed to a Flexible Premium Annuity.

At retirement, IRA and Flexible Premium Annuity proceeds can be withdrawn in a lump sum, in a series of monthly payments, or the proceeds can be withdrawn on an as-needed basis, the same way you’d withdraw money from a savings account at the bank.

Regardless of the savings vehicle you select, Kranick said the best time to start saving is now. “The earlier you start, the better off you are due to interest accumulation. Make a point of paying yourself first!”

To learn how UTUIA can make your retirement more secure, talk to a UTUIA field supervisor today or call UTUIA toll free at (800) 558-8842.