If your employer offers a 401(k) match, don’t leave it on the table. A typical formula like “50% up to 6% of salary” can boost your savings rate dramatically. In your 30s, capturing the full match is a cornerstone of smart retirement planning.
What Is a Match?
If you contribute 6% of your salary and your employer matches 50%, they add an extra 3%. That’s a 50% guaranteed return on that portion before your investments even grow.
Step-by-Step: Get the Full Match
- Log into your 401(k) portal and find your company’s exact matching formula.
- Increase your contribution rate to at least the threshold that earns the full match (e.g., 6%).
- Set up automatic escalation to increase your rate 1%–2% annually.
- Choose low-cost index funds or a target-date fund to keep fees minimal.
Avoid This Pitfall
If you front-load contributions and hit the annual limit early, you could miss out on per-pay-period matching. Some employers only match if you contribute that paycheck. Spread contributions across the year unless your employer offers a “true-up.”
How Much Should You Contribute?
A solid goal in your 30s is a total savings rate of 15%–20%, including employer match. Start by capturing the match, then increase your contributions a little each year or after every raise.
What If Your Budget Is Tight?
- Start at 3%–6% and enable automatic increases.
- Cut one or two low-value expenses to free up cash.
- Apply bonuses or raises directly to contributions before lifestyle creep sets in.