“If you can’t max out your 401(k), that’s not the end of the world.”
The idea of maxing out a 401 or making double-digit percentage contributions to a retirement plan may seem out of reach, but 60% of super savers start these savings habits before reaching their 30s, a new survey found.
Super savers include workers who are saving 90-100% of the maximum limit for a defined contribution plan, or who are deferring at least 15% of their salary to a retirement account, according to Principal Financial’s survey of 1,120 retirement plan participants between the ages of 18 and 57 years old.
The savers reflected in the survey stayed the course, even during the pandemic, market volatility and higher rates of inflation, said Sri Reddy, senior vice president of retirement and income solutions at Principal. “All of these super savers have been resilient,” he said. “They’re viewing this as a buying opportunity to save for the long-term.
The last few months have been particularly turbulent, and at times concerning, what with increasing interest rates and inflation. As during all times of volatility, retirement savers are encouraged to stay put with their investments and not make any drastic changes.
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