this post was submitted on 07 Jun 2023
6 points (100.0% liked)

Personal Finance

3796 readers
4 users here now

Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. Join our community, read the PF Wiki, and get on top of your finances!

Note: This community is not region centric, so if you are posting anything specific to a certain region, kindly specify that in the title (something like [USA], [EU], [AUS] etc.)

founded 1 year ago
MODERATORS
 

So, times are tough in the tech world and my company decided that in addition to no bonuses/ stocks for the foreseeable future, they also want to stop matching our 401k contributions.

They say this is temporary, but it's already been 6 months. I'm in my early 30s, so I still have quite some time before retiring. These small differences now will compound in the long run, and I'm starting to think I should look for a new job.

Does my view of these small missed contributions actually being a big deal make sense, or is it something I should wait out?

you are viewing a single comment's thread
view the rest of the comments
[–] [email protected] 1 points 1 year ago

This in and of itself may be small, but one thing to also consider is how long you have been there and how many raises you gave gotten. As you stay in the same job for some time, employers tend to only increase your pay by an amount that is close to inflation. So you end up being paid the same as when you started, inflation adjusted. But you now have more experience and are thus worth more. That difference increases over time and may have already become bigger in dollar amounts than your missed 401k matchs.

It doesn't hurt to look around for another job. It will tell you how much you are actually leaving out, and even if you are not looking to change, it is good practice to be regularly interviewing, in case you 'involuntarily' need those skills in the future