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Retirement Planning: Is Your 401(k) Sufficient? - Investopedia
A 401(k) is an employer-sponsored retirement plan which allows you to contribute and invest funds from your current earnings for your future retirement. Often, employers will also contribute a percentage of what you contribute on your own – a great employment “perk” for you. And once vested, employer 401(k)s are portable, meaning you can take the money with you when you leave. Indeed, the 401(k) has become a stalwart of the American retirement system, frequently providing a major source of post-career income for seniors.
If a 401(k) is part of your retirement future, you may wonder how your plan balance stacks up against that of the average American. Doing so may, if your balance is lower than most, encourage you to boost your contributions, thus enhancing your future retirement picture. And if your balance is better than average, you know you’re on the right track for a comfortable retirement, although you can always improve (what’s wrong with being even further ahead?). This Investopedia article by Rachel Murphy looks at the American 401(k) scene and, in addition to explaining how 401(k)s work, shows the average 401(k) balance by age group. Click here to read more.