There’s simply no excuse for this. According to a recent study by 401k advisor Financial Engines and a 401k research article by Reuters here, workers are missing out on millions of dollars in retirement savings by not taking full advantage of their 401k plan match at work. An estimated 24 billion in company matching is going untapped by plan participants.


You need to save money the most efficient and effective way possible, which is generally your 401k plan.

This is purely an educational problem. When workers don’t understand the massive impacts small amounts of retirement savings today have on their retirement income later in life, they fail to capitalize on opportunities right in front of them.

Even more is not understanding that small amounts of retirement savings can generate massive guaranteed returns simply from 401k employer matching programs. Add in the tax savings (or tax free nature of ROTH 401k plan contributions), and the compounding of investment growth (which Einstein called the 8th wonder of the world), and these missed opportunities prove financially disastrous for most workers when they don’t even realize it!

You can blame the employee, but at the end of the day it’s the employer that has a fiduciary responsibility to educate their employees. It’s clear this is an educational problem, not an apathy problem.