AOL.com: “Skipping Your Employer 401(K) Match? The Average Worker Loses $1,800 Annually”
November 2, 2026, AOL — Today on AOL.com, reporter Chris Adams writes, “An employer 401(k) match contribution is part of many employment packages. For every dollar a worker contributes to their 401(k), the employer will match it up to a certain percentage of their wage.
“The issue is that most employees do not claim this offer, and for many that is because they don’t understand that their employer is giving them free money,” said financial analyst Brennan Kolar, founder of Atlas CPA Index. “It is a part of your compensation package when you sign an employment agreement, and to claim it you just need to contribute up to the percentage your employer matches each year.”
Here’s an example of how this may play out for an average worker in the United States.
Worker:
- Salary: $72,000
- Employer match: dollar-for-dollar on the first 5% of pay, a common formula
- Full match available: 5% of $72,000 = $3,600 per year
- Employee actually contributes: 2.5% or $1,800 per year
Breakdown:
- Required contribution to earn the full match: $3,600
- Actual employee contribution: $1,800
- Employee contribution shortfall: $1,800
- Employer match earned: $1,800
- Employer match forfeited: $1,800
Total free money lost in one year is $1,800. The total that failed to reach the account, counting the worker’s own missing half, is $3,600.
He asked Marguerita Cheng, certified financial planner (CFP), CEO of Blue Ocean Global Wealth to explain the bottom line.
Rita said: “It can be easy to leave money on the table when it comes to your 401(k) and not taking advantage of employer matching options. One way to start is to read through information provided by your employer and revisit your options every six months or once a year. Some people may think they need to wait until they have more money to invest so they can build wealth. It’s important to have a financial plan to help you identify, clarify and quantify your financial goals so you can pay down debt, build cash and reserves and save for your retirement.”