How Saving 3% More of Each Paycheck Can Boost Your Retirement Savings by 33%
The 401(k) plan is one of the greatest retirement tools available, and yet many people don't take advantage of all its benefits. Research from Alight Solutions revealed that about one in five Americans don't contribute enough to their 401(k)s to receive the full employer match, so they're essentially leaving free money on the table.
On top of missing out on employer matches, many workers aren't saving enough to ensure a financially secure retirement. Experts have long recommended that you save 10% to 15% of your paycheck for retirement, yet the average person only contributes around 6% of their pay, according to Vanguard's 2017 "How America Saves" report.
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Source: Fool.com