401k Improvements at Work. Score!

When I started my first job out of college, my employer offered a 401k program with 50% match up to 6% salary contribution.

From what I’ve read & can tell, that’s pretty standard.

But when I switched jobs, while I was able to increase my salary by about 66%, the 401k program at my new company wasn’t as strong.

It was a 50% match up to 3% salary contribution, with a much longer vesting schedule.

I still contributed 6% in the program, I just wasn’t getting as much free money.

Not a bad problem to have, but I obviously would want to maximize my situation.

Well, not too long ago my employer notified us they were improving their match to 50% up to 6% of my salary.

What does that mean?

Well, over 25 years that’s a projected $81,000 more than with the old program.

Check it out:

I’ll certainly take it.

Now that’s assuming a couple things. A 3% salary increase every year and a 6% average rate of return on my portfolio each year.

Neither of which are way out there. Obviously, salary’s can have larger jumps, but they could also stay stagnant. And the market isn’t going to just stay at 6% of course. But you can only do so much projection.

In the end, the salary increase from changing jobs, of course, had a bigger impact on my long-term savings than the 401k plan adjustment, but changes, improvements & hacks that you do with your finances can add up and I’ll take it.

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2 thoughts to “401k Improvements at Work. Score!”

  1. Nice! Can’t go wrong with essentially another salary increase. Our company utilizes a safe harbor so I will always have a 4% match for a 5% contribution but 4% is better than a lot of people have so I can’t complain!

    1. Yeah 4% certainly is better than it could be, that’s a great point! Thanks for reading & the comment.

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