If you can shop online, you can add to your retirement savings!

If you can shop online, you can add to your retirement savings!

Since their introduction over 30 years ago, 401(k) plans have grown to become a very popular way for employees to save for retirement; and these plans currently hold trillions of dollars in assets. Despite the popularity of these plans, most employees are not saving as much as they should. Many Americans save only 3% or less of their earnings, although experts recommend saving at least 10%. It is easy for an advisor to suggest saving 10%; it is not so easy for employees to invest so much of their paychecks in a plan that places restrictions on withdrawls.

Enter SaverNation. By enrolling with SaverNation, employees do not have to set aside money in advance from gross income, but they can get money added to their 401(k) accounts with almost every purchase they make. When an employee makes an online purchase at a participating merchant, the employee gets 1% to 25% of the purchase added to the employee’s checking account. There are over 600 merchants participating in the plan offering an average of 5% cash back – Sears, Target, Walmart, J. Crew, Apple, Old Navy – to name just a few. That is 5% of a purchase that was going to be made anyway for apparel, books, gifts, health & beauty, electronics, etc. SaverNation deposits this cash to the employee’s checking account and instructs the employer to withhold the same amount from the participant’s paycheck as a pre-tax contribution to the employee’s 401(k) account. This contribution is in addition to any regular payroll deduction that is currently made. SaverNation gives employees cash back for making their normal purchases and the cash can be added to retirement savings.

SaverNation is safe and easy to use. Simply enroll on the SaverNation website, click on the merchant you want to patronize, and place your order. It is that simple. You can use your regular credit card and receive your card rewards, plus get cash back for retirement. You can even have family members use your SaverNation ID to make online purchases and their purchases will add to your retirement savings. Your purchasing history is secure. Your employer is told only the amount of your cash back, not what you buy or how much you spend. There is no cost for the employee to enroll in SaverNation; and for a limited time, SaverNation will waive employer setup fees.

The biggest problem that employees have experienced with retirement plans is deciding how much to set aside from their pay. They want to maximize retirement savings, but do not want to be caught short by unexpected expenses. SaverNation helps solve this problem by giving employees automatic contributions based upon everyday purchases. Peter Macaluso, FMi Vice President, believes in the program and has researched it extensively with legal, tax, and financial professionals. “We see SaverNation as a “Win – Win” for both employees and employers. That is why we are one of the first administrators to offer it.”

Your FMi Sales Representative can explain the SaverNation program in more detail.

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