Nearly 20% of couples miss out on an average of $757 per year in retirement plan matches due to a lack of coordination in their contributions, which could lead to a loss of approximately $14,000 in retirement wealth by age 65, according to a study by the Center for Retirement Research. Many couples are unaware of the importance of coordinating their retirement savings strategies, highlighting the need for regular financial discussions.
One actionable takeaway for you would be to ensure that you or your clients are maximizing employer 401(k) matches by coordinating contributions between spouses. By shifting contributions to the account with the more generous employer match, couples can potentially increase their retirement savings by an average of $757 annually, which could cumulatively boost retirement wealth by about $14,000 by age 65. Regular reviews of contribution strategies, especially during life changes, can help capture these "free" employer dollars.