Do you know how much you’re contributing to your 401(k) account? Many Americans aren’t sure. In fact, about 2/3 of Americans aren’t even invested in their company’s 401(k) or retirement plan. If you aren’t invested, you should start as soon as you can.
If you are currently contributing to your employer sponsored 401(k), your MoneyDo this week is to review your 401(k) contribution.
Most 401(k) providers provide online access to your account, and many send out statements through the US Mail regularly.
Even if you know the percentage you contribute, it’s a good time to review it and consider if you can increase it. About 1/3 of Americans are contributing less than 4 percent to their retirement account[1].
- When you look at your account, determine what percentage you’re contributing
- Determine up to what percent (if any) your employer matches contributions
- Most experts agree that your contribution percentage should AT LEAST mirror your company’s match percentage
How much should you be contributing? That answer would require some more information. But most experts agree that the younger you start, the lower the percentage you’ll need to be setting aside – but the low end of recommendations hovers around ten percent[2][3].
If you’re wondering what you should do, or how to update your contribution, contact your 401(k) provider for details. They are required to have someone ready to serve you.
[1] https://www.fool.com/retirement/2017/01/15/average-americans-401k-contributions-by-age-and-in.aspx
[2] https://www.thebalance.com/how-much-should-i-put-in-my-401k-453991
[3] https://money.usnews.com/money/retirement/401ks/articles/how-much-should-you-contribute-to-a-401-k
