One of the most frequent questions people nearing retirement ask their financial advisor is whether or not their 401(k) savings combined with other investments will be enough to help them enjoy a comfortable retirement.
According to a recent study conducted by RetireOne and Midland National Life Insurance Company, a whopping 82% of surveyed financial advisors reported their clients are fretting about outliving their retirement savings.
A 401(k) is an employment-based retirement plan – you can’t open one unless your employer offers it. If they do, you can choose to contribute money to the plan (up to limits updated by the IRS annually).
If you make enough that you can spare more for savings than IRAs allow, a 401(k) lets you set aside a lot more into a tax-advantaged account and defer taxes to a retirement that may see you in a lower tax bracket.