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Impact of Employer Match on Retirement Profile |
How would you like to claim your share of $24 billion? That's the estimate of how much money was unclaimed in a
report by Financial Engines, an independent investment adviser firm after researching the behavior of 4.4 million retirement plan participants. What kind of money? Employer matching to 401(k) plans.
By now I'm sure you've read
my post on saving as soon as you can for retirement (if you haven't, you can take a few minutes to read that one and then come back). So, you are familiar with the plight of Bob. He's the guy that made the national median household income of $51,939 and earned a good 9.3% on his investments (once he started investing at age 35). Rather than continue to bash Bob for waiting so long to invest, though, I'll give him kudos here. He had an employer matching program that matched fifty cents on the dollar up to the first 6% of his investment (this, by the way is just the most common 401(k) fixed match plan out there, and by no means represents everything).