Question
How can an employer's retirement matching program encourage an employee to save for their retirement?
A: It increases an employee’s regular paycheck.
B: It ensures financial stability in the short term.
C: It boosts savings by adding extra funds to the employee's contribution.
D: It enhances employee knowledge through mandatory financial seminars.
A: It increases an employee’s regular paycheck.
B: It ensures financial stability in the short term.
C: It boosts savings by adding extra funds to the employee's contribution.
D: It enhances employee knowledge through mandatory financial seminars.
Answers
Answered by
GPT-4o mini
C: It boosts savings by adding extra funds to the employee's contribution.
An employer's retirement matching program works by contributing additional funds to an employee's retirement account, based on the employee's own contributions. This effectively incentivizes employees to save more for retirement, as they can see the direct benefit of their contributions being matched, which helps to grow their retirement savings more quickly.
An employer's retirement matching program works by contributing additional funds to an employee's retirement account, based on the employee's own contributions. This effectively incentivizes employees to save more for retirement, as they can see the direct benefit of their contributions being matched, which helps to grow their retirement savings more quickly.