Retirement Plan Participation Stuck in Neutral
Less than two-thirds of people eligible to participate in 401(k) savings plans actually do, according to an article in the Wall Street Journal. What's most surprising is the fact that the participation rate hasn't grown for the past six years, despite frequent warnings that many people are not saving enough for their future.
Matt's View
Time is the most important ingredient when saving for our later years. To understand the importance of getting started with saving sooner than later, consider this: A person who saves a set amount each month beginning at age 21 and then stops adding to his or her savings after 10 years will end up with more by age 65 than a person who waits until age 31 to get started and then saves the same amount each month as the first person (and gets the same rate of return) for the next 35 years! If you're in your 30's, better to get started now than waiting until you're in your 40's. If you're in your 40's... you get the idea.
This article filed in: Retirement , Saving
Managing Money by The Book
- "Be joyful in hope, patient in affliction, faithful in prayer." - Romans 12:12
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