Your 401(k) Plan May Be Selling You Short
If you were auto-enrolled at a default rate of 3% of your salary, don't assume it was for a good reason
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Is 3 percent some magical retirement savings number?
When companies with 401(k) retirement savings plans enroll new hires automatically, many set a default contribution rate of 3 percent of salary. Why not 4, or 5.5, or 6? Are companies saying you can afford to retire if you save just 3 percent of your salary a year?