Benefits of an Employer Match

If you are not contributing (or not contributing enough) to your employer's retirement plan, you may be leaving money on the table. Your employer may provide a matching contribution to your account up to a specific percentage of your pay. So, increasing your contribution may increase the amount of matching contributions you could receive from your employer.

It can really add up.

Joe earns $20,000 a year and defers six percent ($1,200) to his company's retirement plan. His employer matches 25 cents on the dollar up to six percent of salary, so the employer contributes an additional $300 to his account. Even though Joe contributes $1,200 to the plan, he has a balance of $1,500 before any earnings (or losses).

He also benefits from compound earnings over time. Over 40 years, the employer match can have a significant impact on his account balance. For instance, if his account earned a hypothetical 8% annual return over 40 years, his account balance would be 25% higher than if his employer had not matched his contributions.

Talk to your benefits administrator to see if your employer's retirement plan offers a match. Because more money from your employer is the easiest way to save more for retirement.

Before investing, you should carefully consider the investment objectives, risks, charges and expenses of the mutual funds or The Hartford's group variable annuity products and funding agreements, and their underlying funds. For fund and product prospectuses and/or a disclosure document containing this and other information, contact your financial professional or visit our website. Read them carefully.

RPS 7394