Participate in Your Employer’s Retirement Plan

If your employer sponsors a retirement plan, you should strongly consider participating. This may read like simple advice, but it is also one of the most important and practical steps that you can take today toward saving for your retirement. Participating earlier in your career can be a huge advantage down the road.

Participating in an employer-sponsored retirement plan is painless in nature. Since your elected level of contributions comes out of your paycheck before it hits your bank account, it is not your responsibility to remember to earmark that money for retirement. The whole process is essentially on auto-pilot…out of sight, out of mind.

Beyond what you choose to contribute out of your paycheck, many employers also provide additional contributions to your retirement account in the form of a match. If your employer offers a match, then you are leaving money on the table if you choose not to participate in their retirement plan. Ask your employer if they offer a match, and if so, what their match formula is. You should strive to contribute an amount each pay period that enables you to receive the maximum possible match from your employer.

If you’re already participating in your employer’s retirement plan, great job! Make a goal for 2017 to increase your level of contributions to the plan. Small increases over time can add up to substantial retirement savings.