401k Plan Facts and Statistics

The 401k Plan is one of the most commonly used savings plans in the United States. Only an estimated 25% of American workers do not sign up for their employer's 401k plan. Yet, only 10% invests the maximum amount allowed by the 401k plan. Even more, nearly half, do not contribute enough to the 401k plan to be matched by their employer.

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Workers who sign up for the 401k Plan cite different reasons for their investment. Of those polled in a survey regarding 401k Plans, 85% stated that they participate in their company's 401k plan in order to save for retirement. 23% of workers polled stated that they participated in the 401k plan because it allowed them to take a hardship withdrawal from the savings plan. 67% of the workers polled stated that they participated i the 401k plan because of a company match policy.

The 401k plan is an important source of income for many retirees. Of the workers polled in the survey, 44% stated that the 401k plan would be their main source of income in retirement. Of those polled who were not participating in a 401k plan, the main reason given for not participating was that they did not have extra money to save.