Financial advisor Darcy Bergen is the president of Bergen Financial Group. Committed to helping people have financial freedom in retirement, Darcy Bergen encourages people in employment with 401(k) plans to take advantage of employer matching accounts.
Saving retirement money in a 401(k) alone will not lead to a comfortable retirement for many Americans. A study by Boston College’s Center for Retirement Research reveals that most Americans’ balances are not enough to guarantee a financially secure retirement. So how can workers maximize their 401(k) contributions? By taking advantage of employer matches.
Workers who fail to get their full employers match are leaving huge sums of money on the table. On average, workers leave retirement incomes worth $1,336 every year by failing to maximize employer matches. Taken over the course of a person’s employment, this amount really adds up. Paying $1,336 into a 401(k) earning a 10 percent return every year for 45 years will grow to a $960,000 retirement fortune. That’s enough to give you a comfortable retirement. Workers should take advantage of employer matches on 401(k) plans and invest the proceeds wisely to help grow their nest eggs exponentially over time.