Average Retirement Contribution

[Meat]

I'm writing a paper; in your estimation, what does the average Express employee contribute to their 401(k) prior to the company match?

 

[abused.crr]

Very little from the conversations I've had with coworkers. I'd say 4% as an average among all employees just because so many people don't participate.

 

[Meat]

Very little from the conversations I've had with coworkers. I'd say 4% as an average among all employees just because so many people don't participate.

Why don't they contribute at least the standard ten?

 

[Schweddy]

Since when is "10%" the standard?

 

[abused.crr]

You'd be surprised at how many express employees don't even know that we no longer have a traditional pension. Or at least that it's been capped years ago. I'd say that a lot of them do 0 because they don't understand the tax benefit and company match. And the one that do 7-10% only do that because that's all they can afford. Most express express employees are week to week as it is.

 

[Meat]

You'd be surprised at how many express employees don't even know that we no longer have a traditional pension. Or at least that it's been capped years ago. I'd say that a lot of them do 0 because they don't understand the tax benefit and company match. And the one that do 7-10% only do that because that's all they can afford. Most express express employees are week to week as it is.

That's no excuse; everybody lives week-to-week, just at different levels.

 

[Oldfart]

You'd be surprised at how many express employees don't even know that we no longer have a traditional pension. Or at least that it's been capped years ago. I'd say that a lot of them do 0 because they don't understand the tax benefit and company match. And the one that do 7-10% only do that because that's all they can afford. Most express express employees are week to week as it is.

The answers to all of those unknowns are easily available. Not knowing means you haven't bothered researching. I believe at 1 time, every employee was automatically enrolled in the 401k with a certain %. They had to actually opt out of the plan. If a person isn't interested enough in their future to read and learn all they can about what their options are, that is their fault.

 

[abused.crr]

I'm not justifying it, just reporting it.

 

[Oldfart]

That's no excuse; everybody lives week-to-week, just at different levels.

Spot on. Living week to week while you stop at Starbucks daily in your car that cost twice as much as you make in a year.

 

[abused.crr]

I've done 15% for almost my entire 22 years. I talk to a lot of who don't know what they're contributing.

 

[Oldfart]

I'm not justifying it, just reporting it.

No doubt. Several weeks ago our senior manager gave an excellent presentation about the various retirement benefits that are available to employees. I heard several 30+ year employees asking questions about how the 401k works and how do they enroll. That tells me these 50+ year old employees have no savings for retirement.

 

[abused.crr]

And always always marry up! When it comes to picking a spouse, out kick your coverage. Find someone who makes the knot! Even if it's same sex (trying to make this post political too)

 

[zerocool5468]

I started 6 months ago. Express automatically set me up @ 3% 401k contribution. Thus far the company hasn't even been matching that amount in full. I have no idea what the "pension" entails. Can anyone elaborate on what a new-hire can expect out of it?

 

[Oldfart]

I started 6 months ago. Express automatically set me up @ 3% 401k contribution. Thus far the company hasn't even been matching that amount in full. I have no idea what the "pension" entails. Can anyone elaborate on what a new-hire can expect out of it?

You do not get the full match until you contribute 6%. They match that with 3.5%. I believe anything below 6% is matched about 50% though I am not certain. Vanguard can tell you for sure. The traditional pension is a program where the company contributes a % of your yearly salary into an account every May or June. I get an 8% contribution but I am a long time employee. I believe newer employees get 10%, again I am not sure. That account is 100% funded by the company and draws 4% interest every year.

 

[Meat]

I started 6 months ago. Express automatically set me up @ 3% 401k contribution. Thus far the company hasn't even been matching that amount in full. I have no idea what the "pension" entails. Can anyone elaborate on what a new-hire can expect out of it?

Double your contribution (at least).

 

[fdxsux]

Can anyone elaborate on what a new-hire can expect out of it?

Next to nothing.

 

[vantexan]

You do not get the full match until you contribute 6%. They match that with 3.5%. I believe anything below 6% is matched about 50% though I am not certain. Vanguard can tell you for sure. The traditional pension is a program where the company contributes a % of your yearly salary into an account every May or June. I get an 8% contribution but I am a long time employee. I believe newer employees get 10%, again I am not sure. That account is 100% funded by the company and draws 4% interest every year.

No, the traditional pension is the one they terminated in 2008. You described the portable pension plan. And a lot of couriers don't even know that they have two plans available to them: the portable(PPP) and the 401k. The 401k is the one that you contribute a percentage of your gross weekly and if you contribute 6% they'll contribute 3.5% which is the most they'll give you but your money is invested in a Vanguard fund that you choose that'll hopefully give you a decent return. Vanguard will fill you in on the details.

 

[!Retired!]

You'd be surprised at how many express employees don't even know that we no longer have a traditional pension.

The OP didn't ask about our pension.

That's no excuse; everybody lives week-to-week, just at different levels.

Wrong..

The 401k is the one that you contribute a percentage of your gross weekly and if you contribute 6% they'll contribute 3.5% which is the most they'll give you but your money is invested in a Vanguard fund that you choose that'll hopefully give you a decent return. Vanguard will fill you in on the details.

Vanguard has consistently been one of the top rated and, even MORE important, their fees are among the lowest around. IF you wanted to invest more into a retirement fund, you should contribute only up to what the company will match (6%) and then start a separate account, either another standard 401K or Roth.

 

[McFeely]

I believe at 1 time, every employee was automatically enrolled in the 401k with a certain %. They had to actually opt out of the plan.

I started 6 months ago. Express automatically set me up @ 3% 401k contribution.

I am a relatively new hire (<5 years) and this was true when I started too. I also believe that FedEx has it set up with Vanguard to automatically bump it up by 1% each year until you opt out/change that setting as well.

As for what do most employees contribute...why not make it an anonymous poll? You'll at least get some data for your report thingy.

 

[Oldfart]

No, the traditional pension is the one they terminated in 2008. You described the portable pension plan. And a lot of couriers don't even know that they have two plans available to them: the portable(PPP) and the 401k. The 401k is the one that you contribute a percentage of your gross weekly and if you contribute 6% they'll contribute 3.5% which is the most they'll give you but your money is invested in a Vanguard fund that you choose that'll hopefully give you a decent return. Vanguard will fill you in on the details.

Sorry, you are correct. I misspoke. The portable is the current plan.