Daily Traders Edge

The No. 1 mistake Americans make when saving for retirement

January 31
14:48 2018

When it comes to retirement savings, Americans are falling short. According to a report from the Economic Policy Institute, the median retirement savings of all working-age families, which the EPI defines as those between 32 and 61 years old, is just $5,000.

But even many of those who contribute to a retirement account could be losing out on hundreds per year, and thousands of dollars over time. The oversight: Not taking full advantage of an employer’s 401(k) match.

It’s the first thing that comes to mind for Eric Roberge, a CFP and founder of Beyond Your Hammock, when asked what he sees as the biggest mistake people make when saving for retirement.

“My first response is not receiving the employer’s matching contribution,” he tells CNBC Make It. “If you have a 401(k) at work and you choose to open a Roth IRA, and your employer’s willing to give you 100 percent of the first 5 percent that you put in your 401(k), you’re missing out on free money.”

Continue Reading at CNBC

Related Articles

Newsletter Signup

Sign up for our free newsletter