If you’ve only just begun your career and are starting to collect a decent paycheck, the last thing on your mind is probably retirement planning. When you’re in your twenties and thirties, retirement can feel light-years away, but it will get here much quicker than you can imagine. And when it does, you’ll want to be prepared.
As a retirement plan, 401(k) plans currently outpace the competition, with more than 54 million Americans participating in a 401(k) plan, and nearly 550,000 plans offered. This is a great option for saving for retirement.
Employer-sponsored, 401(k) plans are by far the easiest mechanism for workers to get started saving for retirement. And because there is typically an employer match for contributions up to a certain percentage, workers can end up leaving a significant amount of money on the table if they choose to forego participating in the company 401(k) plan.