While browsing the internet the other day I came across a startling, but not too surprising statistic. Current research suggests that 70% of Generation Y workers do not participate in their companies 401k (or similar savings accounts). For those unfamiliar with the term “Generation Y,” it refers to individuals born in the mid 1970s to 2000. It’s easy to understand why many young people would choose not to contribute to a 401K program. For a young person retirement is often the last thing on the mind. It’s easier to choose to spend the money NOW, rather than saving it for LATER.

What people do not often realize is that choosing to not participate in a 401K program is actually causing them to LOSE money. Until about a month ago I was part of the 70% who do not contribute. My employer will match up to 3% of your salary in a 403B (401K for non-profits) after working there for one year. I had procrastinated on signing up for this benefit and missed out on three years of contribution. When I went back and calculated the amount I would have had if I chose to be a part of the program, I realized that I had missed out on $3000! It blew my mind that I had lost out on that much!

The sad thing is that it is not just young people who choose not to participate. The same study found that over 20% of people 45 and older do not participate in their employers program. This finding is almost even more surprising considering this group of people is even closer to retirement age.

The lesson here is that regardless of your age, it pays to be a part of these programs. I suggest that if you are not currently contributing to your employers 401K or 403B and they offer a match that you begin doing so immediately. You need to check with your employer to see what their policy is because each company handles this differently. For example, my company will match my contribution to the account up to 3% of my salary. I decided to put that much in the account for now and any additional money that I want to invest into my Roth IRA. Remember when you make contributions to a 401K you are using pretax dollars, so you will have to pay taxes on the money when you take it account.

So what are you waiting for? Go talk to your employer today to find out what type of 401K program they offer and sign up immediately! It’s not fun to think about losing money!

	This article was written by Robby Davis. Robby is a school teacher and graduate student. He and his wife, Megan, live in Tulsa, OK. He is a big sports fan and is known for being the life of the party. Robby hopes to be able to help others find financial freedom by sharing what he has learned throughout his journey.