National 401(k) Day - Invest in Your Future Today

National 401(k) Day is a timely opportunity to remind your employees that they play a significant role in their own financial future. Whether they're just starting their career or nearing retirement, there is never a wrong time for your people to evaluate their retirement savings strategy and make meaningful adjustments to that can pay off in the long run. Our AssuredPartners team can help you find the best way to initiate these important financial conversations with your employees.

Understanding the 401(k)

A 401(k) plan is one of the most powerful tools available for retirement savings. Sponsored by employers, it allows employees to contribute a portion of their paycheck before taxes are deducted, helping them build a nest egg while reducing their annual taxable income. But the benefits go far beyond tax savings:

• Tax Advantages: Contributions are made pre-tax, which lowers employees’ taxable income. Plus, their investments grow tax-deferred, meaning they won’t pay taxes on gains until they withdraw funds in retirement.
• Employer Match: Many employers offer matching contributions—essentially free money that encourages and boosts employee savings. If employees are not contributing enough to receive the full match, they could be leaving money on the table.
• Compound Growth: Time is an employee’s greatest ally. The earlier they start saving, the more time their investments have to grow through the power of compounding interest.
• Investment Flexibility: Most plans offer a variety of investment options, allowing employees to tailor their portfolio to their preferred risk tolerance and retirement timeline.

Encouraging Action Today

National 401(k) Day doesn’t require balloons or cake—just a few smart financial moves:

• Reviewing Contributions: It is important to periodically remind employees to review their contributions to ensure they’re contributing enough to maximize any available match. Even a small increase can make a big difference over time.
• Assessing the Investment Mix: Encourage employees to review their portfolios to ensure they reflect the employee’s future financial goals and comfort with risk. Younger investors might lean toward growth-oriented funds, while those closer to retirement may prefer more conservative options.
• Increasing Savings: Oftentimes, employees evaluate their 401(k) contributions around the times of annual reviews, raises or bonuses. Increasing contribution rates by 1–2% may seem like a small change, but over time can lead to significant growth.
• Asking Questions: Promote educational resources to your organization to help eliminate barriers to getting guidance.

National 401(k) Day is a celebration of smart planning, informed decisions, and the commitment to a secure future. Retirement may seem distant, but each step employees take, brings them closer to improved financial security later.

For more information on the AssuredPartners Investment Advisors team or for support specific to your organization, reach out to the AssuredPartners team today.