If you’re still slaving away in the rat race counting down the days until retirement, you’re probably noticing how much it costs.
Saving up for a couple-decade vacation puts a huge strain on your too-small paychecks.
But what if I told you there’s an underground plan in the works to make your boss pay for your retirement?
Or, better yet, make their boss pay for everyone’s?
It’s something that could happen for you, so let me tell you how to set it up.
If you’re one of the few Americans who receive a work-based retirement plan, count yourself lucky.
A recent report showed that only half of all households in the country are granted that luxury.
And I say luxury because, for the most part, having a retirement account set up through your employer takes a lot of the legwork away for you.
First and foremost, you don’t have to shop for accounts and compare things you’re not really sure you understand anyway.
Second, the account can almost always be set up to take contributions automatically from your paycheck, and may help you not miss what you’re saving for retirement.
Third, you could be one of the luckiest of them all and have the opportunity to cash in on an employer’s contribution match.
If you’re unfamiliar, this is when your employers are bound by law to contribute a percentage (sometimes 100%!) of the contributions you make to your own retirement plan.
People fortunate enough to be in this situation have double the amount padding their retirement without even lifting a finger!
Adding to benefits like these is a goal of the Funding Our Future campaign, which is a group of organizations dedicated to improving retirement security for people like you.
Their most recent crusade is to bolster Universal Private (UP) retirement accounts.
In an effort to reduce the adverse effects Americans without a work-based retirement plan face, they’ve proposed a method in which your employer would be responsible for funding your account.
It’s been likened to both minimum wage and Social Security.
Your feelings on both of those institutions aside, this program could help you astronomically if you are one of the many without an employer-sponsored retirement plan.
Other states have tried to make up for the gap.
Oregon automatically enrolls employees into an investment retirement account (IRA) if their workplace does not offer one.
The problem there is they’ve relieved no burden off of you to contribute to it, and you will never have the option of employer contribution matches.
UP accounts would be entirely funded by your employer.
Similar to how both employer and employee have payroll taxes for Social Security, it would be considered part of the price an employer pays to keep you.
For every hour you work, your boss (or your boss’s boss, who knows) is required to contribute 50 cents to your UP account.
And you’re not required to contribute at all if you don’t want to.
Research shows that at the age of 67, a worker who contributed nothing and relied only on their employer would have $200,000 to retire on.
Not impressed? It’s still $170,000 higher than what the average person has saved by the time they retire.
Imagine how much more you’d make if you contributed to the UP account as well.
But these accounts aren’t in existence yet, and only time and the election will tell if they’ll survive the political pulpit.
For now, keep your eye out for these elusive retirement payouts.
Your employer owes you an all-expenses paid vacation right about now I’d venture, so why not make it your retirement?