Take a look at this article from Smart Money about a new law that will allow companies to set employees up for automatic contributions to their 401(k) accounts. It will also allow a company to automatically increase an employees contributions to a 401(k) each year up to a certain cap percentage.
According to the article, about 25% of eligible employees choose not to participate in their 401(k), and only 11% of the employees that do participate will max out their contributions. It’s understandable why some people don’t contribute the maximum amount, but to not participate at all, is detrimental to your financial well-being. Many companies offer a company match, which is FREE money. You’ll never have anyone offer you free money the rest of your life, so why not take it?