Watch & Learn! Exclusive Tips on Building Your Savings Before the Year Ends
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Inflation and higher interest rates have significantly affected Americans’ finances this year. With many workers living paycheck to paycheck, it leaves little room to add to savings.
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Credit cards no substitute for emergency fund
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Employers help workers build emergency savings
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A recent survey found building savings for emergencies and paying monthly bills is often just as stressful for most U.S. workers — if not more stressful — than saving enough for retirement. Many companies are helping employees deal with these stressors by offering more holistic financial benefits, like emergency savings accounts and student loan repayment plans, in addition to retirement savings options.
November is open enrollment season for many workers. Check with your employer to find out what new perks may be offered next year for you and your family members.
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“When it comes to financial inclusion…it’s all about access. It’s making sure everyone has access to financial services products that help them through life.”
–Dan Houston, Principal Financial Group CEO
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Retirement contribution limits increase in 2024
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Please don’t leave free money on the table. If your employer offers to match your contribution to a workplace retirement plan, put in enough money to get that match. You have until December 31 to contribute up to $22,500 in a 401(k) plan for 2023, or $30,000 (including a $7,500 catch-up contribution) if you are 50 or older.
You can stash even more money in a 401(k) next year. The employee contribution limit for 401(k) plans is increasing to $23,000 in 2024 — catch-up contributions for savers age 50 and older will remain unchanged at $7,500 for a total of $30,500. These amounts also apply to 403(b) plans, most 457 plans and Thrift Savings Plans.
Many people in their 40s and 50s have a lot of catching up to do. According to the National Institute for Retirement Security, the typical Gen X household only has about $40,000 saved for retirement. Watch our latest video with some often-overlooked options to help boost your retirement savings.
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Understand your pay and total compensation
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Fair wages may be the most important factor in reducing financial stress. Pay transparency laws in several states have encouraged many employers to disclose salary ranges.
However, research shows some companies are lowering advertised salary bands to discourage job candidates from seeking higher wages and existing employees from being disgruntled about their current pay. Still, you must ask managers about total compensation — wages and benefits — to ensure you are paid fairly.
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To find out more ways to deal with inflation, reduce debt, and maximize your finances, join me and top financial experts for a “CNBC Your Money” virtual event next week on Thursday, November 9 at 12 pm ET. Register now for this free event.
I look forward to seeing you there!
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