This Age Group Is The Most Likely To Max Out Their 401(k)—See How You Compare
This Age Group Is The Most Likely To Max Out Their 401(k)—See How You Compare
This Age Group Is The Most Likely To Max Out Their 401(k)—See How You Compare
Are you maxing out your 401(k) or at least trying to? A recent study suggests that some age groups are more likely than others to reach their retirement savings goals. And it's not who you'd expect. According to the data, workers between the ages of 55 and 64 are the most likely to contribute the maximum allowed amount to their 401(k) plans. In fact, nearly 30% of this age group has maxed out their contributions in the past year. But why is it that this age group is so diligent about saving for retirement? One possible explanation is that they're closer to retirement age and can see the finish line. Whatever the reason, it's clear that this age group is taking their retirement savings seriously. Of course, not everyone is maxing out their 401(k) just yet. If you're struggling to save or haven't started saving at all, don't worry – there's still time to get back on track. Consider setting up automatic transfers from your paycheck to your retirement account to make saving easier and less painful. Here are some tips for boosting your retirement savings:- Take advantage of employer matching: If your employer offers a 401(k) or other retirement plan matching program, contribute enough to maximize the match. This is essentially free money that can add up over time.
- Automate your savings: Set up automatic transfers from your paycheck to your retirement account to make saving easier and less painful.
- Consider a Roth IRA: If you're eligible, consider contributing to a Roth Individual Retirement Account (IRA). Contributions are made with after-tax dollars, but the money grows tax-free and withdrawals are tax-free in retirement.
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