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Save and Invest for Retirement
Once you have a good handle on your daily spending and saving, it’s time to take the next step in your financial wellness journey. By saving and investing in the HP 401(k) Plan, you can help your retirement contributions (and matching contributions from HP) grow over time. The plan also offers a variety of investment options to meet you where you are. Explore the tips and tools below so you can take a meaningful next step toward reaching your goals for the future.
Retirement Saving
For many of us, retirement will be the single largest expense of our lifetime.
The sooner you start saving, the more time your money can grow through the power of compounding interest.
If you’re just starting your career, with other priorities on your plate and age 67 being far away, you may be tempted to push saving for retirement to the bottom of your list. However, starting even five years early can make a big difference thanks to compounding. If you save $500 per month in a retirement account earning a 7% return, you could have $1.03M if you start at age 30 or $1.48M if you start at age 25.1
It’s recommended that you save at least 15% of your pay toward retirement.
Any contributions made to your 401(k) (including matching contributions from HP) count toward that 15%, too. If you’re not quite there yet, even making small increases now can have a big impact.
With the Contribution Calculator2, you can see how increasing your contributions (even by 1 or 2%) can impact how much you could accumulate over time.
Learn the Basics of the HP 401(k) Plan
- You can make the following types of contributions: Pre-tax, Roth, After-tax, and Catch-up (if you’re aged 50+ by the end of the year). Check your current contributions on Fidelity NetBenefits®
- HP matches the first 4% of contributions you make to the Plan. Want to maximize the match? Use the Contribution Modeler to see if you’re on the right track.
- In 2026, you can contribute up to $24,500 in combined pre-tax and Roth contributions, plus an additional $8,000 if you’re aged 50+.
- You are always 100% vested in your own contributions to the Plan, along with any related earnings. Refer to the HP 401(k) Plan Vesting Schedule for more details
Retirement Investing
Hands off or hands on, the HP 401(k) Plan gives you the flexibility to approach investing the way you like. The investment fund lineup is divided into five categories, or “tiers”:
Tier 1: Complete Portfolios
- If you’re new to investing or don’t want to spend a lot of time managing your investments, you may want to consider the Birth Date Funds in this tier.
Tier 2: Core Active Funds
- If you want to create your own portfolio, Tier 2 offers “actively managed” funds from the major asset classes (equities, bonds, and short-term investments) that seek to outperform benchmarks.
Tier 3: Core Passive Funds
- If you want to create your own portfolio—or round out Tier 2 investments—Tier 3 offers passively managed funds, also known as index funds.
Tier 4: Extended Funds
- If you’re looking to diversify beyond the core asset classes in Tiers 2 and 3, Tier 4 offers funds from additional asset classes that either provide diversification benefits or meet special needs, such as inflation protection. This tier also includes the HP Stock Fund as a single stock investment option.
Tier 5: Mutual Fund Brokerage Window
- If you’re looking for expanded choices outside the fund lineup, you may be interested in Tier 5. This tier allows you to go outside the HP 401(k) Plan fund lineup and invest money in thousands of brand-name mutual funds offered through Fidelity’s self-directed brokerage window.
Did you know that having a large portion of your 401(k) assets in a single stock may result in a significantly higher volatility risk than having a diversified portfolio? Diversification can help you build a solid investment strategy and keep you on the right track to meet your retirement goals. By setting and maintaining a healthy asset allocation among a mix of stocks, bonds, and other investments, you can help reduce risk because when the market in one asset class is down, another may be up. Essentially, diversification and asset allocation is an effective strategy to help you manage your investment risk.3
To learn more about these options or to change your investment approach, visit NetBenefits.
401(k) Plan Contribution Modeler
Model your contributions in the HP 401(k) Plan and ensure you’re maximizing the match from HP.
What’s Next?
Thrive
You’ve learned, you’ve grown, and now it’s time to set yourself up to thrive in the future. Take steps toward long-term planning or start thinking about your transition to retirement.
1This hypothetical example assumes the following: (1) $6,000 annual contributions at the beginning of each year for 42 and 37 years; (2) An annual rate of return of 7%. (3) The ending values do not reflect taxes, fees, inflation, or withdrawals. If they did, amounts would be lower. Earnings and pre-tax contributions are subject to taxes when withdrawn. Distributions before age 59½ may also be subject to a 10% penalty. Contribution amounts are subject to IRS and plan limits. Systematic investing does not ensure a profit or guarantee against a loss in a declining market. This example is for illustrative purposes only and does not represent the performance of any security. Consider your current and anticipated investment horizon when making an investment decision, as the illustration may not reflect this. The assumed rate of return used in this example is not guaranteed. Investments that have potential for 7% annual rate of return also come with risk of loss.
2The calculator is for illustrative purposes only and the results shown are purely hypothetical and not meant to reflect any actual investment. The principal value and investment return of your plan will fluctuate and investment returns are not guaranteed and actual results will vary. You are solely responsible for the accuracy of any data you enter into this calculator, and the calculations are based on the information you have entered. The simplified tax calculations also do not take into account any other Pre-tax deferrals, such as your reimbursement accounts for health or dental insurance, or other payroll taxes, such as FICA.
3Diversification and asset allocation do not ensure a profit or guarantee against loss.