The Current Retirement Regret Workers Face
What’s the one retirement regret on the minds of workers and current retirees?
According to a recent survey, the current retirement regret workers face is not saving sooner for retirement. In the survey, 74 percent of workers advise they did not save early enough, while 68 percent of current retirees also regret waiting to save. (1)
To help secure retirement, it is important to start early. While you can’t turn back the clock, you can take action now and increase your savings in additional retirement opportunities.
One saving opportunity to take advantage of is in an employer-sponsored 401(k). Benefits of an employer-sponsored retirement account include matching contributions (check if your company matches), tax-deferred earnings and compound interest. It’s important to take control and improve your financial outlook with these benefits.
The benefits of an employer-sponsored 401(k):
Matching Contributions. Many employers will match a portion of your savings. If you do not participate, it is passing up free money. Additionally, if you aren’t currently maxing out your retirement contribution, do what you can to get the maximum match. This is free money to help build your retirement account.
Tax-Deferred Earnings. When you contribute a percentage of your pay to a 401(k) plan, your contribution comes out of your paycheck before income taxes are deducted. Your taxable income is less, which in turn lowers your tax bill. (2)
Compound Interest. The amount of money you contribute to your retirement account grows over time. As a result, the more you contribute today means the longer it has until your retirement date to grow.
Furthermore, it is important to max out contributions. According to a research report on employer 401(k) matching contributions, Americans leave an estimate of $24 billion in unclaimed 401(k) company matches on the table each year. Take advantage of every opportunity to fund your retirement account and max out your contributions. (3)
Although you can’t turn back the clock to save for retirement sooner, you can take advantage of the saving opportunities within an employer-sponsored 401(k).
1 – http://www.aol.com/article/finance/2016/12/27/almost-75-percent-of-americans-have-this-major-retirement-regret/21642685/
2 – http://www.practicalmoneyskills.com/personalfinance/lifeevents/benefits/401kadvantages.php
3 – https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/missing-out-on–match.aspx