Here on the blog we often share insights that help both financial advisors and Plan Sponsors navigate retirement planning. This week we are shaking things up and dedicating the entire week to the people who make up any retirement plan: participants. No matter what type of plan your employer offers, it is important as an employee to know what your benefits are and how those benefits will impact you over time. With this being said, here are two of the four reasons you should be investing in your 403(b) Plan.
Over the past 10-20 years, the economy has turned into a roller coaster ride which has left the working people uneasy in terms of their futures. With the uncertainty surrounding pensions and programs such as Social Security, people are hesitant about how they can create a safety net for retirement. This is where utilizing the retirement plan offered by an employer is indispensable. These plans give you the opportunity to save your own income each and every pay period so that your money can grow along with you. See more on this topic here.
We should start out by saying that not all employers contribute a Match to the 403(b) Plan; however, for those that do, this is an excellent benefit for the participants of the Plan. In the simplest form, employer matching is essentially ‘free’ money that is being added to your retirement fund and who doesn’t like the sound of that? Even if you cannot personally afford to fund a large amount to your 403(b) Plan, contributing even just a small percentage will allow you to take advantage of this benefit. It will also allow you to build an even more security for your retirement years. Be sure to check with your employer to confirm if they provide a match and how much.