How do employers typically assist employees with retirement savings?

Employers typically assist employees with retirement savings by matching contributions to retirement accounts. This practice encourages employees to save for retirement, as it essentially provides them with 'free money' that supplements their own contributions. For example, an employer may match a percentage of the employee's contributions, which increases the overall amount saved for retirement without requiring additional effort or expense from the employee. This incentive not only enhances the attractiveness of retirement plans but also serves to foster employee loyalty and engagement.

Matching contributions are beneficial to both employees and employers. Employees enjoy a larger nest egg for their retirement, while employers can enhance their benefits packages, which helps in recruiting and retaining talent. This type of assistance is particularly prevalent in employer-sponsored retirement plans, such as 401(k) plans, where the employer's matching contributions can significantly impact an employee's financial security in retirement.