Pass the Catchup, Please
19%: Increase in 401(k) contributions planned by those 50 and older
Better late than never. Older workers may finally be hearing the whistle from that approaching retirement train, and are ready to do something about it. According to the "Mercer Workplace Survey 12," employees 50 and over plan to increase their 401(k) contributions this year by 19%, to an average just over $8,200. That compares to an expected increase by all employees of just 7%. The good news is the rules allow anyone over 50 to add thousands of dollars to the usual contribution limits, and the number of employees in that age group who say they plan to max out contributions nearly doubled (to 13%).
That's a good reason to show employees how catch-up contributions can make a big impact on their 401(k).
Sources: planadviser.com; Mercer Workplace Survey 12
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