Workplace Retirement Plans
Jill Schlesinger
CBS News Business Analyst, host "Jill on Money/MoneyWatch" pods, author of "The Great Money Reset"
Raise your hand if your employer offers a workplace retirement plan. Keep it raised if your employer offers a match. Raise the other hand if you’re participating.
Now keep them both raised if you can tell me what fees you’re paying and what funds you’re invested in. Funny how all those hands just went down!
Most of us have access to retirement plans through our jobs and Americans have more assets than ever in those plans and with the advent of financial technology (fintech), plans have become more robust. Some are using advanced algorithms to help employees select the most appropriate benefits based on information provided, while others assist participants with fulfilling future goals, like purchasing a home, sending kids to college, and ultimately retiring.
Whether or not your plan is using fintech, there are specific questions that you should be asking:
- Are you contributing to six percent?
- Are you increasing your contribution by at least one percent each year?
- Are you getting the full match, if there is one?
- Are you using the appropriate funds based on your goals?
- Are you aware of the fees and how they change based on what you choose?
The more you know, the more likely you are to reach your retirement goals.
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Financial Advisor - Wilderness Guide
6 年Nice article Jill Schlesinger! An important topic. Happily there many options are coming on the marketplace for plan sponsors with much lower fees, but, there's still a long way to go!
#401klady. Simple & Honest Financial Advice
6 年Great topic! The benefits industry has changed and participant directed plans are quickly becoming a very important part of the individual's financial success.