Relying on your employer

Company pensions in the private sector have become a thing of the past. As explained by Mark Thomas, senior vice president of Aon Affinity Insurance Services, said, “employers are switching employee benefits from so-called ‘defined benefit plans’ (a pension) to ‘defined contribution plans’ (401(k)).” Unfortunately, this only comes to prove that you cannot count on your employer or the government for that matter, to provide the financial support you need during your golden years.

Neglecting your employer’s match

According to the Bureau of Labor Statistics, one-fourth of workers don’t take advantage of at least one part of their employer’s matching contributions. In numbers, the average worker misses out on the equivalent of $1,336, on an annual basis.

To avoid making the same mistake, the Vanguard Group suggests making contributions of 12-15 percent of your salary to achieve your retirement objectives. This includes taking full advantage of your employer’s match.