3 Signs Your Company’s 401(k) Plan Isn’t Working for You

In an ideal world, retirement should be a time of relaxation, enjoyment and rest. Entering your golden years with financial peace of mind is crucial. A lot of it has to do with how much you save during your career. Fortunately, the majority of workers have access to an employer-sponsored retirement plan.

Explore More: How To Protect Your 401(k) From a Stock Market Crash

For You: 5 Unusual Ways To Make Extra Money That Actually Work

According to the Bureau of Labor Statistics (BLS), as of 2024, 70% of private industry workers had access to a defined contribution retirement plan. That’s compared with 66% of civilian workers and 39% of state and local government workers.

However, for those who are eligible to participate in an employer-sponsored 401(k) plan, there are several signs to be aware of that may indicate your plan is not working for you, according to U.S. News & World Report and Lifesighted:

You Don’t Get an Employer Match

Some employers may offer a dollar-for-dollar 401(k) match on your retirement plan contributions. For example, if you contributed 4% of your salary toward retirement plan contributions and your employer matched your contribution with an additional 4%, you’d be saving 8% annually.  However, if your employer doesn’t offer this crucial feature, you may be missing out on additional retirement savings that would otherwise compound over time. Consider seeking out jobs that offer an 401(k) match so you can save more for your future.

Consider This: 6 Things the 1% Are Doing With Their Roth Accounts (And Why You Should Pay Attention)

There’s a Long Vesting Schedule

A vesting schedule determines how long it takes for an employer match to become part of your retirement plan balance. For example, an employer may offer a 4% dollar-for-dollar match on your retirement plan contributions, but their match may not be yours to keep until you’ve stayed at your job for a minimum amount of years. If you leave a job before you meet the vesting schedule criteria, you could lose whatever percentage your employer matched. It’s worth inquiring about your employer’s 401(k) vesting schedule before deciding to leave a job so you can align your departure and keep as much money as possible.

Available Funds Have High Fees

There may be administrative expenses associated with 401(k) plans, which are often passed on to the employee by the employer. Additionally, there may also be fees associated with the funds themselves. Be sure to review all fees before choosing which funds to invest in. If fees are too high, this can eat into any gains you earn on your investments over time and may adversely impact your wealth in retirement.

More From GOBankingRates

• From 2% to Nearly Everyone: Musk's X Post on Income Tax Raises Big Questions
• Here's the Minimum Salary Required To Be Considered Upper Class in California
• 5 Things You Must Do When Your Savings Reach $50,000
• 5 Low-Risk Ways To Build Your Savings in 2025

This article originally appeared on GOBankingRates.com: 3 Signs Your Company’s 401(k) Plan Isn’t Working for You

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.