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Three common 401(k) misconceptions; three tips to a financially secure retirement.

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by StatePoint Media

If you contribute a portion of your income to a 401(k), you may think you’re all set for a comfortable retirement. Experts say it’s important to take a closer look at these savings.

To help you get started, Lincoln Financial Group is breaking down three common misconceptions about saving for retirement revealed in a recent survey of U.S. employees by Lincoln Financial and CivicScience:

• True or False: “Saving enough to meet the employer match is enough to keep me on track for a comfortable retirement.” This one is (most likely) false! An employer match (if offered) is a good place to start, but if you really want to make sure you have enough of a nestegg to retire when and how you want, a good rule of thumb is to save at least 10 to 15 percent of your salary.

• True or False: “Paying down my student loan debt as quickly as possible is more important than saving for my retirement.” This can be true…or false, depending on your situation. While you should not delay saving for retirement, it’s a good idea to speak with a financial professional to determine how to strategize paying off debt while also planning for your future. You can also use free tools like the debt calculator found at to help you make a plan for paying off debt.

• True or False: “I’ve thought about moving money from an old employer’s 401(k) into my current employer’s 401(k), but it seems like it would be too much of a hassle.” This one is false! While it is important to consider all options of your 401(k) platform prior to making a decision, the process for a rollover is typically very easy and brings multiple benefits. Instead of tracking investment selections, performance or statements for multiple accounts, for example, you’ll only have to monitor a single account.

“While there are certainly still some misconceptions when it comes to saving for the future, the majority of those surveyed understand the importance of not delaying saving for later in their careers,” said Aaron Moore, senior vice president, Retirement Plan Client Engagement, Lincoln Financial Group. “This is cause for celebration, as delaying saving for retirement can have a significant impact on future savings. This is another reason why we are focused on working with employers to educate their employees so they can achieve the retirement they envision.”

If you’re looking for more ways to help set yourself up for a financially secure future, here are three tips to keep in mind:

1. Check your account. It might sound simple, but logging in regularly (try for at least once a quarter) can help ensure you’re on track with your savings goal. Be sure to use the calculators and projection tools your retirement plan offers.

2. Update (or create) a goal. When you have a goal to work toward, research shows you’ll be more likely to increase your contributions, and therefore, increase your savings.

3. Meet with a professional. If your employer offers retirement consultants, schedule a meeting, or consider speaking with a financial professional, who can help you understand the full picture of your savings and where to focus your efforts. n

For more resources, tools and calculators, visit