Here are five messages you and your investment adviser may wish to consider sharing with your employees in your annual employee education sessions:
1. Contribute as much as you can. Remember, we all need to average at least 13% in contributions to our 401(k) accounts each year if we are to retire without reducing our standard of living. Since most of us don’t contribute anything close to that amount, advise participants to consider increasing their contribution rates by at least 1% every time they get a raise. Increasing contributions gradually when participants experience a salary increase minimizes the impact of additional 401(k) contributions on take home pay.
