March 29, 2012 § Leave a comment
The older you get, hopefully the more you’ve learned. And as you look back on life, you realize that some things have helped you in achieving your goals, and other things didn’t help. Having a retirement plan at work helps folks save for their futures. Fidelity, a provider of workplace retirement plans, did a survey on retirement savings and the benefits of those plans in work places, and here’s what they found.
I wouldn’t be saving without a work plan – 55% of those surveyed said they wouldn’t be saving any money fort their retirement at all if it were not for the plan they have at work. A retirement plan for any business can be a low-cost benefit. For those of you with no plan at work, encouraging your employer to begin a retirement plan could really benefit you.
Company match- helpful– Retirement plans often allow employers to contribute money into your retirement savings account. This contribution is called a match and the rules vary, so I won’t hurt your brain with all the details. But Fidelity found that having a match prompted a 53% increased in an individual’s account contribution either because of a raise or from a desire to take better advantage of the company’s match.
Borrowing- not helpful – Some retirement plans allow one to borrow from their retirement money. The survey found that of those who borrowed, 29% said it was a mistake that they wish they hadn’t made. They would not do borrow again.
Got a business? There are many retirement plans one of which may be a great fit for your firm. Do you have a plan at your workplace? Take advantage of it! And learn from the mistakes of others, my friends.