Are You Telling Employees to Save More in Their 401(k) Plans?
Posted on Thursday, February 26, 2009 by Frank RocheWhat are you saying to your employees about saving in their 401(k)? Do you find it hard to give them good advice about saving for retirement when you’re scared yourself? How do you counteract the advice they’re getting from all their friends and relatives to save money under their mattresses?
These are the questions we wrestle with in HR communications today. Getting it right is the only way. We don’t need to wake up 20 years from now and have a retirement savings gap that’s as big as a house.
Bill Strahan
Mar 1st, 2009
Don’t forget when you think about this what value the match (assuming you still have one) brings.
If I put in $100 and my employer has a 100% match, I now have $200.
If my account goes down 30%, I now have about $130. Still $30 more than I had.
Like so much in life, it looks different when you focus on what you have rather than what you lost.
Frank Roche
Mar 2nd, 2009
I’m promoting this to the front page. Excellent analysis, as always.