Do You Know How Much You've Saved in Your 401(k)?

A clear glass jar that says 401k on its side is tipped over with money tumbling out.

A major perk for many of us when deciding whether to work for an employer is their retirement savings program — or lack thereof. A 401(k) is a tax-advantaged retirement plan that allows employees to contribute a certain percentage of their paycheck into a subsequent individual account sponsored by their employer. With the end of the year approaching fast, now is a great time to check in on your retirement plan, specifically your 401(k).

A recent Retirement Security Survey conducted by Principal Financial Group found that around 6 in 10 respondents, or a stark 59%, wrongly believed they were contributing to a 401(k) retirement plan. The survey also suggests that a lack of understanding when it comes to eligibility requirements and enrollment is largely contributing to lower participation rates. Unfortunately, ignorance isn’t bliss when it comes to financially securing your future, and the following four steps can help you get started.