A new study tries to find out what the average worker – in various cities and industries – is contributing to his/her 401(k) plan. See how your contribution stacks up.
HR services provider TriNet said that its TriNet SMBeat is a monthly analysis of small to medium-sized business (SMB) employment and human capital economic indicators.
The May 2014 issue of the report chronicled how big a contribution workers were making to their 401(k)s. What they found, not surprisingly, is that higher income workers tend to contribute more than lower income workers do.
TriNet said that the average employee in its database contributes around 4% of their base salary to 401(k) plans. However, a slim majority (51%) contribute nothing at all. (Experts say that you should save a minimum of 5% of your income toward retirement).
Among TriNet’s worker populations, the 401(k)-contributing champions were found in the San Francisco Bay Area. Employees in the Bay Area were found to contribute an average of $4,700 per year to their plans.
How are your contributions stacking up against these averages?
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