First, Let’s Call It What It Is
Your company’s retirement plan? A dud. No match, no “free money,” no boost to your future. You’re not alone, though. Even among employers that do offer retirement plans, the average match is only about 4.6% of pay (Investopedia). That means plenty of people are in the same boat — some with zero, others with scraps.
It stings, but it’s not the end of your savings story. Here’s how you keep building wealth when the company won’t help.
Step 1: Use Your 401(k) Anyway (If It’s Decent)
Even without a match, your 401(k) gives you tax advantages:
- Traditional 401(k): Reduces taxable income now, grows tax-deferred.
- Roth 401(k): No upfront tax break, but grows and withdraws tax-free.
Check the fees and investment choices. If they’re reasonable, it’s still worth using.
Step 2: Max Out Other Accounts First
If your 401(k) stinks or you want more flexibility:
- IRA or Roth IRA — Low-cost, flexible investments. Contribution limit is $7,000 in 2025 (plus $1,000 catch-up if you’re 50+).
- HSA (if eligible) — Triple tax advantage and doubles as a medical retirement fund.
Step 3: Invest Beyond Retirement Accounts
If you can save more after maxing tax-advantaged options:
- Brokerage account — No tax perks, but total flexibility. Perfect for midlife goals before age 59½.
- Extra mortgage payments — If rates are high, knocking down debt can be a guaranteed return.
Step 4: Remember — You’re Still in Charge
A retirement match feels like “free money,” but your wealth isn’t capped by your employer. What really moves the needle is:
- Consistency in saving.
- Keeping costs low.
- Letting compounding work in your favor.
The Bottom Line
Yes, it stings when your company doesn’t chip in. But you’re not locked out of retirement savings. Between IRAs, HSAs, and brokerage accounts, you can build the same future — you just need to be more intentional about it.
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