Workplace retirement savings plans are an excellent way to invest in your future. The earlier you start, the more time your savings have to grow. Typically automated through payroll deductions, contributions to plans such as 401(k)s or 403(b)s are tax-advantaged and easy to make.
Research by Edward Jones and Morning Consult shows three in five Americans with access to a workplace retirement plan contribute; however, 59% of employers do not offer one, leaving a gap in financial access and education at a key entry point for investing. For local business owners—who create two out of every three new U.S. jobs, according to the National Business Association—offering retirement benefits can be challenging. New efforts aim to help businesses of all sizes support employees’ financial goals.
“Edward Jones is expanding its retirement plan offerings and investing in technologies that streamline plan design, administration and financial education,” said Alyssa (Lysa) Harper, principal and head of the Workplace Segment at Edward Jones. “With our nationwide network, we are well-positioned to serve small- to mid-size businesses and their employees.”
If you’re offered a workplace retirement plan, these tips can help you make the most of it:
- Start now. Even small contributions can grow significantly over time.
- Get the match. Contribute at least enough to earn any employer match; aim over time for 10%–15% of income.
- Increase gradually. Raise your savings rate by about 1% each year or use auto-escalation.
- Use windfalls. Direct part of raises or bonuses to retirement savings.
- Seek advice. Fifty-two percent of Americans say advisor guidance would make them more likely to participate, according to Edward Jones research.
Workplace retirement plans are a key part of long-term financial security, and expanding options for employers are helping more Americans gain access.
