A recent Businessolver blog post reports that some of the biggest pitfalls employees make when planning for retirement are not participating in their companies' 401(k) programs and not putting away enough in retirement savings.
In the post, Businessolver offers advice on helping employees build enough savings for their retirement, something that Americans are not doing, according to recent data from Transamerica Life Insurance.
"Baby Boomers have saved $164,000 (estimated median) in all household retirement accounts, Generation X has saved $72,000 (estimated median), and Millennials have saved $37,000 (estimated median) – these savings are needed to last two or more decades in retirement," the blog states.
Another study that Businessolver points to in its blog post shows that Americans are not good about saving their money for a rainy day with approximately 80 percent unable to take on an emergency expense over $1,000.
However, according to the Businessolver blog, one analyst said the biggest retirement mistake is not paying attention to your company's 401(k) match.
“If you have a 401(k) at work ... and your employer’s willing to give you 100% of the first 5% that you put in your 401(k), you're missing out on free money," Eric Roberge, a certified financial professional, is quoted as saying on Businessolver's blog.
Businessolver says employers also need to do a better job of educating and training their employees about their company's retirement plans.