National 401(k) Day: Check In on Your Retirement Savings
September 3, 2025
The first Friday after Labor Day may not be a date you circle on your calendar, but it’s worth paying attention to. That’s National 401(k) Day—an annual reminder to pause and think about one of the most important pieces of your financial future: your retirement plan.
Sponsored by the Profit Sharing/401(k) Council of America (PSCA), National 401(k) Day was established to encourage workers to take a closer look at their retirement savings. With busy schedules and competing financial priorities, it’s easy to “set and forget” your 401(k) contributions once you enroll. This day serves as a nudge to review where you stand, make adjustments if necessary, and ensure your savings are on track for the long term.
Why the 401(k) Matters
For most Americans, the 401(k) is the single largest tool for retirement savings. It offers several powerful advantages:
● Tax benefits: Contributions are made pre-tax in traditional 401(k)s, reducing your taxable income today, or after-tax in Roth 401(k)s, allowing for tax-free withdrawals later.
● Employer match: Many employers offer matching contributions—a rare opportunity to receive “free money” just for participating.
● Automatic savings: Contributions come directly from your paycheck, making it easier to build wealth consistently over time.
● Investment growth: Money inside your 401(k) grows tax-deferred (traditional) or tax-free (Roth), which allows compounding to work more effectively.
Given these benefits, your 401(k) is often the foundation of a solid retirement plan.
How Much Should You Save?
A common rule of thumb is to save at least 15% of your income for retirement, including both your contributions and your employer’s match. If that feels out of reach, start smaller and increase your contribution rate each year. Even boosting your savings by 1% annually can make a meaningful difference over time.
Remember, retirement may last 20–30 years or more. Saving diligently now provides the flexibility to enjoy those years without financial stress.
Steps to Take on National 401(k) Day
Think of this day as your financial check-up. Here are some practical actions you can take:
1. Review Your Contributions
Are you contributing enough to receive the full employer match? If not, increase your contribution rate today—you don’t want to leave free money on the table. If you’re already getting the match, consider whether you can stretch further toward that 15% goal.
2. Revisit Your Investment Allocation
When was the last time you looked at how your 401(k) is invested? Many plans offer a mix of stock, bond, and target-date funds. Make sure your allocation still fits your age, goals, and risk tolerance. Younger savers often benefit from more stock exposure, while those nearing retirement may want to reduce risk.
3. Explore Roth vs. Traditional Options
If your plan offers both traditional and Roth 401(k)s, weigh the benefits of each. Traditional contributions give you tax savings now, while Roth contributions could provide tax-free withdrawals in retirement. Depending on your income and long-term outlook, a mix of both may be beneficial.
4. Check Fees
High fees can eat away at your savings over decades. Review your plan’s investment options and expense ratios. If you have access to low-cost index funds, they can be a strong foundation for your portfolio.
5. Consolidate Old Accounts
If you’ve changed jobs, you may have left behind old 401(k) accounts. National 401(k) Day is a good reminder to track them down and consider rolling them into your current plan or an IRA to simplify management.
Common Mistakes to Avoid
While saving in a 401(k) is straightforward, there are pitfalls to watch out for:
● Cashing out early: Withdrawing funds before age 59½ usually triggers taxes and penalties, shrinking your nest egg.
● Ignoring rebalancing: Market ups and downs can shift your allocation over time. Rebalancing helps you stay aligned with your risk profile.
● Not increasing contributions: As your income grows, so should your savings rate.
Avoiding these missteps helps keep your retirement plan on track.
Looking Ahead
National 401(k) Day is more than just a date on the calendar—it’s an opportunity. Retirement planning is not about making one perfect decision; it’s about consistently making small, smart choices that add up over time.
Use this day as motivation to check your progress, celebrate your discipline, and make any adjustments needed. The sooner you engage with your retirement savings, the greater the power of compounding will work in your favor.
Final Thought
Your future self will thank you for every dollar saved today. Whether you’re just getting started or have been contributing for years, National 401(k) Day is the perfect reminder to invest in your future security. Take a few minutes to review your plan—you may find that small changes today lead to a more comfortable, confident retirement tomorrow.
Sources:
https://nationaltoday.com/national-401k-day/
Disclosure:
This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.
This material is provided as a courtesy and for educational purposes only.
These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.