If You're Not Saving in This Retirement Plan, You're Missing Out

Retiring on Social Security alone is a pretty big mistake. The average monthly benefit these days amounts to $1,657 (that figure accounts for 2022's 5.9% cost-of-living adjustment). All told, that's just under $20,000 a year.

Even if you're willing to live frugally as a senior, you may end up needing a lot more money than that to enjoy retirement to the fullest. And so you'll need to consistently fund a savings plan to help ensure that you have extra cash to tap on top of Social Security.

When it comes to saving for retirement, it often pays to participate in a 401(k) plan if one is available to you. That's because 401(k)s come with generous annual contribution limits. And many of the employers that sponsor these plans offer matching incentives to boot. For you, that means free money toward retirement.

Source Fool.com