There is no investment on earth that reliably returns 100% the instant you make it — except an employer match. Put in a dollar, your employer drops in a dollar (up to a limit), before the market does anything at all. And yet a sizeable share of workers leave part of it sitting there, usually because no one ever spelled out the math.
The match, in plain numbers
Take that typical “100% of 3% + 50% of 2%” formula on a $60,000 salary. Contribute 5% and the free money lands on top of your own savings — no strings, no waiting.
Why a “small” 4% is enormous over time
That $2,400 a year isn’t just $2,400. Invested and compounding over a career, the match you skip becomes a six-figure hole in your retirement.
The fix, and the Canadian version
In the US: log into your 401(k) and raise your contribution to at least the percentage that earns the full match (often 5–6%). Find your exact formula in your plan summary or ask HR: “What do I need to contribute to get the full match?” If money’s tight, even getting to the match line first beats almost everything else.
In Canada: the same logic applies to a group RRSP or a Deferred Profit Sharing Plan (DPSP). If your employer matches contributions, contribute at least enough to capture the full match — it’s the same free 100% return.
About this guide: written and reviewed by the MoneyMolecule editorial team. Figures here are illustrative — your savings depend on your situation. Sources are linked inline. This is general information, not financial advice; for your specific case, compare official sources or consult a qualified professional.