This Is the Average 401(k) Balance. How Does Yours Compare?

We all need to save independently for retirement for one big reason: Social Security won't provide enough income for a comfortable lifestyle. Those benefits will generally replace about 40% of your former paycheck if you're an average earner, and most seniors need roughly twice that sum to cover their expenses.

That's why saving in a tax-advantaged retirement plan is a smart move, and if you have a 401(k), it's worth contributing to it. Not only do 401(k)s offer much higher annual contribution limits than IRAs, but many of the companies that sponsor them also match employee contributions to varying degrees. The result? Free money for you.

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Source Fool.com