The company match. Have you heard of it?
An employee benefit that often is so overlooked, either because of misunderstanding or no understanding, it can literally be a saving grace for you.
This area in employee benefits gets so little attention, that I was recently reminded of the importance of a match with a recent article in Bloomberg BusinessWeek. They listed the top companies for matches, as well as the worst companies for matches.
The results were wide ranging, from Facebooks no match or contributions to ConocoPhillips potential match of 9%. You read that right, 9%. In a time when companies have virtually stopped offering pensions a company match is the next best thing. From the Businessweek story a ConocoPhillips employee who was hired after recently graduating saved just 1% and was eligible for the company’s 9% match. Meaning he was stashing away 10% a year, while keeping 99% of his pay.
Talk about savings!
Even if you can’t find an employer that matches 9% find one that values saving for retirement. If your employer matches around 5-6% think about how much less you would have to contribute to get to your savings goal. That means for example if you had a savings goal of 10% and your company matched 5% you could take home an extra 5%.
You don’t have to be a math whiz to see that getting help for your retirement is a huge benefit that so many overlook.
Think about how much you save, want more in take home pay, find an employer that matches. It could allow you to take that job with lower pay but better overall benefits.