34% of 401(k) Investors Are Making This Massive Savings Mistake
If you see an unclaimed $5 on the ground, you pick it up, right? Maybe you look around first to see who's paying attention, but you still grab the cash and claim it as your own.
And yet, according to a new Vanguard report, claiming free money is something many 401(k) investors are failing to do. Specifically, the report finds that 34% of 401(k) investors are not contributing enough to qualify for their full employer match.
Employer match describes the money your employer puts in your retirement account for free. To qualify for the full amount, you must make your own retirement contribution up to a certain percentage of your salary. Thinking back to the unclaimed money on the ground, this means you throw down your own $5 first. Then you can pick up your $5 and the unclaimed $5 and walk away with both in your pocket.
Source Fool.com
