Jerry is 22 years old and earns $50,000 per year and loves to shop.
His employer matches 50% up to 6% of Jerry’s contributions.
Jerry decides to only contribute 2% so he can shop more. This earns him an additional $41.67 per month in a company match.
By not maximizing the company match, Jerry will leave $1,000 on the table in one year. By the time Jerry reaches retirement age, he will have lost out on more than $43,000 for retirement.
If Jerry put the additional $1,000 towards his retirement, assuming an average return of 10% per year, (from 22 to age 65) the $1,000 per year would grow to $592,400.
Many make the same mistake as Jerry. On average, employees leave $1,336 in matching funds on the table each year. Earn your full savings potential by hitting the full match and saving for the retirement of your dreams!
On the Employer Match piece, please add the following disclosure: “Examples are hypothetical and for illustrative purposes only. The rates of return do not represent any actual investment and cannot be guaranteed. Any investment involves the potential loss of principal.”