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Not saving enough -- or at all
Once you sign up, figuring out the best amount to contribute is the next hurdle. Not surprisingly, most people don't contribute enough.
The average contribution rate is 6 percent, says Anthony Webb, research director at the Schwartz Center for Economic Policy Analysis in New York and former senior research economist at the Center for Retirement Research at Boston College. Combined with a typical 50 percent match from the employer, the average employee saves 9 percent of salary annually.
"If the employee started (saving) at age 22 and contributed every year to age 66, that might possibly be enough. But if you add in gaps, late starters, etc., then the calculations that we have done at the Center (for Retirement Research) show that 9 percent is really, really not enough," says Webb.
Get some interest on your savings starting today by shopping money market accounts.