Intelligence

The 401(k) Mistake You Can’t Afford to Make

Data from Alight Solutions and Wells Fargo suggest that a significant number of Americans are not saving enough in their 401k to get a matching contribution. This would cover how costly that can be and what you can do to raise your contribution level so you can snag the match. 1. Why do workers still miss the match? Is it because they don’t make enough to save the full amount to get the match, or are they simply not taking the time to understand how the match works? How can someone make sure they’re getting the match from the start? 2. How much money could a saver miss out on over the course of their career if they don’t get the match? 3. How helpful can auto-escalation be if you can’t afford to increase your contributions all at once? 4. What do savers need to be aware of, in terms of vesting schedules or fees to make sure they’re getting the most value out of their match? 5. What are some ways savers can make up the difference in their retirement savings if their 401k doesn’t have an employer match?