National 401(k) Day | Information from Our Advisors
Every year, National 401(k) Day falls on the first Friday after Labor Day. Created by the Plan Sponsor Council of America, this day gives employees a chance to evaluate their retirement plans in order to strengthen their financial futures. While most holidays often are celebrated with food, gatherings and traditions, this unique days serves as a valuable checkpoint for something we are all working toward: preparing our financial future.
Why Its Important
Retirement Planning Awareness:
National 401(k) Day underscores the importance of saving early and consistently for retirement, especially as fewer Americans rely on pensions or Social Security alone. Research shows that 79% of workers have access to a 401(k), but only 41% participate, pointing to a notable education gap. 1
Employer Contributions:
401(k) plans often come with employer matching contributions, essentially providing employees with "free money" to bolster retirement savings. These employer matches are a central feature of the 401(k)’s appeal. Make sure you know your company match to ensure you're contributing enough to not leave "free money" on the table. Talk to an advisor today to make sure you're on the right track.
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Compound Growth:
The earlier you start, the more you benefit from compound growth, your contributions and investment gains generate even more gains over the years. A small increase now could add up to significant savings later.
Financial Well‑Being
Building retirement savings isn’t just about the distant future. Financial security directly impacts stress, confidence, and peace of mind today. National 401(k) Day is a reminder that small steps now mean big rewards down the line.
How You Can Celebrate National 401(k) Day
- Be sure to check and review your current 401(k) contributions. Could you increase your savings by even 1%? Small adjustments now can add up significantly over time.
- Take a look at your portfolio allocation. Is it aligned with your goals, timeline, and comfort level with risk?
- Make sure you know what your employer matches and maximize it. Make sure you’re not leaving money on the table.
- Use this day as an excuse to read up on retirement planning strategies or attend a workplace financial seminar if one is offered.
- Share reminders with friends, family, or coworkers. Talking about money openly helps others take their savings seriously too.
National 401(k) Day is more than a financial holiday, it’s a nudge to pause and consider whether your retirement strategy is on track. Use it as a reminder to review your plan, make improvements, and celebrate the gift you’re giving your future self: financial independence and peace of mind.
https://nationaltoday.com/national-401k-day/
https://www.psca.org/
https://www.adp.com/spark/articles/2017/11/top-five-reasons-to-offer-a-401k-plan.aspx