A prevalent savings scheme in retirement plans
A prevalent savings scheme in retirement plans (e.g., 401(k)s in the US) is “matching contributions,” where employers match some portion of the amount that employees contribute to their retirement accounts.
What is the best way to describe this effort at changing employees’ savings behaviours?
A 401(k) plan is a tax-advantaged plan that offers a way to save for retirement.
With a traditional 401(k) an employee contributes to the plan with pre-tax wages, meaning contributions are not considered taxable income.
What is the most common type of retirement savings?
IRAs. The IRA is one of the most common retirement plans. An individual can set up an IRA at a financial institution, such as a bank or brokerage firm, to hold investments — stocks, mutual funds, bonds and cash — earmarked for retirement.
