Workers are encouraged to save for retirement as Social Security alone may not be enough. On average, retirees need 70% to 80% of their former income to live comfortably, but Social Security only replaces about 40% of pre-retirement salary. To bridge the gap, it’s crucial to invest in a 401(k) and take advantage of employer matches. However, it’s essential to manage 401(k) wisely by avoiding common mistakes like not claiming full employer matches, cashing out when switching jobs, and overlooking fees. Maximize retirement savings and avoid unnecessary losses by making informed decisions.

Read more at Nasdaq.: 3 Retirement Savings Mistakes That Are All Too Easy to Make in a 401(k)