Take Advantage of Matching Contributions from Your Employer
A 401(k) match is when an employer matches the amount that you contribute to your workplace retirement account with a contribution of their own. Employers have a lot of freedom in terms of the match they provide but generally, if you want to get the full match, you need to save a certain percentage of your income.
Unfortunately, more than twenty-five percent of workers can’t take advantage of this free money because they end up contributing less to their retirement plan, according to Financial Engines, an independent investment adviser website. “If you work for an employer that offers a retirement plan and a company match, be sure to contribute enough to receive the full employer match,” Anspach said. “Many employers match up to 3% of your pay. At $50,000 a year of income, that adds up to $1,500 a year of employer-provided funds.”
