From Yahoo Finance: 2025-05-25 11:02:00

Millions of Americans with 401(k) plans are missing out on essential retirement benefits, with one in five workers not maximizing their employer match, according to Vanguard. Financial experts advise that the smartest move an employee can make is to contribute enough to receive the full match, which can provide an immediate return on investment.

401(k) employer match contributions are based on employee contributions, with the potential to receive additional funds annually. Despite the benefits, many eligible workers do not take full advantage of their 401(k) plans, especially the employer match. Financial strain and lack of awareness contribute to low participation rates, particularly among Gen X.

To strengthen retirement savings, experts recommend maximizing the employer match, utilizing automatic escalation features, and avoiding early withdrawals. Changing jobs can lead to neglecting 401(k) rollovers, resulting in higher fees or misaligned investments. Starting a 401(k) is advised as the second-smartest move individuals can make for their financial future, regardless of age.



Read more at Yahoo Finance: This Is the No. 1 Thing Every American Should Do With Their 401(k)