Married couples are leaving thousands of dollars on the table by not taking full advantage of employer 401(k) matching contributions. A new study shows one in five married couples fail to contribute enough to capture all available matching funds, forfeiting an average of $757 per year per household.
Employer matching works like this: when you contribute to your 401(k), your employer matches a portion of those contributions, typically up to a set percentage of your salary. It's essentially free money that disappears if you don't claim it. For couples earning $50,000 to $100,000 annually, missing $757 per year compounds significantly over a working lifetime. Over 30 years, that's roughly $23,000 in lost retirement savings before accounting for investment growth.
The reasons couples miss out vary. Some lack awareness that their employer offers matching at all. Others underestimate how much they need to save and contribute too little to trigger the full match. Couples may also fail to coordinate contributions across multiple employer plans if both spouses work, accidentally leaving a match unclaimed at one job while over-contributing at another.
The fix is straightforward: check your employer's plan documents or speak with your benefits administrator to learn the exact matching formula. Most plans match 50% to 100% of contributions up to 3% to 6% of salary. Calculate how much you need to contribute to capture the entire match, then adjust your paycheck deductions accordingly.
For married couples, coordination matters. If both spouses work, review both 401(k) plans together. Each employer typically offers matching based on individual contributions, so both of you should contribute enough to maximize both matches. Setting calendar reminders to review your contribution rates annually helps account for raises and plan changes.
This is especially relevant if you recently changed jobs, started a new marriage, or adjusted your household finances. Recalc