401(k) Benchmark: Achieve Your Retirement Goal

Okay, here’s a revised and fact-checked version of the provided text, incorporating current data as of today, February 1, 2024. I’ve focused on updating contribution limits and addressing potential inaccuracies. I’ve also maintained the original structure and tone. Changes are noted at the end.

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Also, you never know what will happen in your career. Maybe you’ll go work at a startup that doesn’t offer a retirement plan,for instance. in that case, you might wish you’d put more into your 401(k). That is especially true considering contribution limits are much higher in DC plans than in many other types of accounts. For example,individual retirement accounts (IRAs) have an annual contribution limit of $7,000 in 2024,with an additional $1,000 catch-up contribution for those age 50 or older.

Moreover, reaching for the max can help if you’ve been neglecting your retirement savings and need to catch up.

“The reality is that most people have not saved enough for retirement, and for Americans, with the uncertainty of the availability of Social Security funds in the future, saving as much as possible for retirement is not a bad place to start,” Wheeler said.

How To Increase Your Retirement Contributions

Saving tens of thousands of dollars per year isn’t easy. That’s clear to see from the minority of DC plan participants who max out their accounts. However, there are ways to at least get closer to this goal on a more modest income.

1. Be intentional about your cash flow: “Expenses have a way of creeping up, so building strong habits around budgeting and regularly reviewing your spending can make a big difference,” said Amanda DeCesar, CFP and co-founder of Tara Wealth. “Small adjustments-redirecting a raise, bonus, or even trimming recurring expenses-add up over time,” she said.”
2. Make the most of your employer-sponsored plan: Many employers match your contributions up to a certain limit, so try to at least