5/17/2015 – Workers missing out on employer match in 401(k) plans (The Dallas Morning News)

May 17, 2015 Comments Off by

Workers are probably leaving $24 billion a year in unclaimed 401(k) company matches, according to a study by Financial Engines. And no, that’s not a typo.The company, which provides retirement advice to employees in 401(k) plans, examined the saving records of 4.4 million retirement plan participants at 553 companies. It found that 25 percent of employees miss out on receiving the full company match by not saving enough.“The typical employee failing to receive the full match leaves $1,336 of potential ‘free money’ on the table each year, which equates to an extra 2.4 percent of annual income not received,” Financial Engines said. Using a return of 4.5 percent a year and factoring in compounding, the company figures that free money could amount to as much as $42,855 over 20 years.

Read the full article in The Dallas Morning News.

Financial Landing 2015

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