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FINRA Investor Alert: Taking Advantage of 401(k) Matching

One of the largest concerns of every American, at some point in their lives, is how they will be able to make ends meet when they retire. Why is it, then, that almost 30 percent of Americans aren’t contributing enough to their 401(k) to get their full employer match? FINRA’s new Investor Alert, “Why Leave Money on the Table — Make the Most of Your Employer’s 401(k) Match” deals with this question and encourages greater 401(k) contributions by those not taking full advantage of this match.

FINRA Investor Alert: Taking Advantage of 401(k) Matching

Part of the problem could be age, and the fact that many young employees aren’t yet looking at their retirement seriously. According to a recent study, 43 percent of young workers age 20-29 don’t put enough money into their 401(k) to get their employers’ full match. According to FINRA’s press release on the Investor Alert, “Millions of workers, especially younger and lower-income workers who need it most, are leaving money — free money — on the table.”

Another factor lowering employee 401(k) contribution may be the state of the economy. With less money to go around, it’s often hard to put away for the future. However, hard economic times should be incentive to put away more to protect your retirement. According to FINRA Vice President of Investor Education Gerri Walsh, “Even in tough economic times, all employees still need to prepare for their retirement. Taking full advantage of a company’s 401(k) match is a no-cost way for workers to boost their retirement savings.”

The Investor Alert also contains valuable information about the value and tax benefits of corporate 401(k) matching, as well as “key points to remember.” FINRA’s Investor Alerts are designed to help the public get the most from their investments and protect themselves against broker misconduct. For more information, read the full Investor Alert at

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