Your Company Doesn't Offer a Match - Now What?
You've heard it before. Give yourself a raise by contributing to your employer’s retirement plan. That is, if your employer offers a match.
Some companies encourage employee contributions to their retirement plans by offering a match up to a certain percentage. Many employers give 50% of every dollar up to 6% or 7% percent of an employee’s income.
What if your employer doesn’t offer a match?
If you don’t have access to an employer match, don’t despair. You'll feel more of the burden of building your own retirement assets, but on the upside, you have many options.
Put the heat on available investments
Take maximum advantage of investment plans available to you by considering these options:
- Contribute more - Put a higher percentage of your income into your existing retirement plan. Since it’s tax deferred, it may be cheaper than you think.
- Try other tax-deferred options - Consider opening a traditional IRA if you’ve reached the maximum contribution level in your employer-sponsored plan.
- Consider getting taxed "up front" - Contributions made to a Roth IRA are taxed now, but qualified Roth earnings are never taxed.
Invest at home
- Purchase a home - Owning a home allows you to write off more in taxes. Plus, the equity you build can be invested toward your next house and eventually toward retirement, assuming that the value of your home doesn't drop.
- Upgrade your home - If you already own a home, make strategic updates to increase resale value.
Light a fire under your employer
Determine the dollar amount of a potential employer match, then consider it part of your overall compensation:
- Request a raise - It may or may not work, but it’s certainly worth asking.
- Ask your employer to consider starting a matching program - remind them it may help attract new talent and increase plan participation.
- Compare job offers - The next time you interview, be sure to ask about all available benefits, including the employer match. If you’re not offered one, consider negotiating a higher salary to make up for the loss.
What are your next steps?
Take strides to increase your investment growth potential but first be sure to discuss your plan with an investment professional. Don't have one? Learn how to choose an investment professional and find out what they can do for you. Keep in mind that neither Nationwide nor any of our representatives give legal or tax advice, contact your legal or tax advisor for such guidance.
