Three Part Series (2 of 3)

How Can Women Close the Retirement Savings Gap? (1 min read)

Women expect they'll have a five-year income shortfall in retirement. Men, on the other hand, believe that their income will be enough to meet their needs.

Here's the second of three things a woman can do to shore up their savings:

Know Your 401(k) Plan

If you're thinking about leaving your job or slashing your hours to better accommodate caring for family members, understand what it means for your retirement plan.

"Make sure you know every single benefit you have! 

That's because you may be subject to vesting requirements, meaning that you need to have been at your employer for a specified period of time before you can take any profit-sharing or matching contributions your company had saved on your behalf.

If you leave too early, you may forfeit those employer contributions.  For 401(k) plans, you may need to put in as much as six years of service before you are fully vested.

Source: CNBC


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