--- title: Employers Are Boosting 401(k) Benefits to Compete for Workers Amid the Great Resignation description: Many employers, including Meta (Facebook) are offering improved 401(k) benefits to compete better for workers during the Great Resignation. authors: - name: Sarah Hansen role: Senior Writer url: https://money.com/author/sarah-hansen/ bio: Sarah Hansen is a senior writer at Money covering all things personal finance. Previously, she covered economic policy and capital markets on the breaking news desk at Forbes. education: Northwestern University, New York University at_money_since: 2021 articles: 347 covers: - Business - Banking - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Health and Wellness - Housing - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes social: - https://www.linkedin.com/in/sarah-m-hansen/ former_staff: true published: '2022-01-18T20:35:10.000Z' modified: '2024-04-17T12:49:51.000Z' section: Business tags: - 401(k) - retirement accounts word_count: 629 canonical: https://money.com/401k-benefits-improve-great-resignation/ type: Article source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Close up view of a hand placing a coin into a piggy bank](https://img.money.com/2022/01/News-401K-Popular-Job-Perk-2022.jpg) Forget foosball tables, unlimited vacation and free beer on tap. The best work perk in 2022 might be your [401(k)](https://money.com/what-is-a-401k-rollover/) plan — a classic job benefit that's getting even better than usual for many employees. The retirement vehicle created in 1978 is getting a lot more attention in 2022 as companies scramble to retain workers amid a persistent labor shortage. Americans have been quitting their jobs at [record rates](https://money.com/record-high-workers-quitting-jobs/) month after month in a trend that's been dubbed the ["Great Resignation,"](https://money.com/great-resignation-retirement-401k-tips/) and employers are being forced to up the ante in the competition for good workers. A [401(k)](https://money.com/401k-and-401k-rollover/) is a tax-advantaged retirement plan sponsored by an employer. In a traditional 401(k), employees contribute pre-tax money from their paychecks that is then invested in a [mutual fund or funds](https://money.com/what-are-mutual-funds/). Taxes aren’t due until the money is withdrawn in retirement. A major draw of these types of plans is the matching contribution benefit many employers offer, usually up to a certain percentage of what an employee earns. Of 1,000 workers [surveyed](https://resources.betterment.com/hubfs/PDFs/b4b/reports/financial-wellness-benefits-survey.pdf) in September by Betterment’s 401(k) Business, 65% said they could be enticed to [leave their current job](https://money.com/401k-most-important-financial-worker-benefit/) for one that offers a high-quality 401(k) or other retirement plan. Facebook parent Meta and consulting giant KPMG are among a slew of companies ramping up their 401(k) benefits in an attempt to hire new workers and retain existing ones, according to a new [report](https://www.wsj.com/articles/in-battle-for-workers-the-humble-401-k-gets-richer-in-2022-11642501803) from the *Wall Street Journal*. At the beginning of the year, Meta upped its 401(k) match to $1 per every $1 contributed by an employee, up to $10,250 or $13,500 for older employees. Meta previously matched half of employee contributions up to 7% of an employee’s pay, the *Journal* reported. KPMG began contributing between 6% and 8% of employer pay in January, up from a 25% match of up to 5% of employee base pay. The changes at big companies like Meta and KPMG are one sign that employers are paying attention to the growing importance of [financial wellness benefits](https://money.com/401k-most-important-financial-worker-benefit/) for workers. Some 16% of large and midsize employers plan to raise 401(k) contributions or reinstate a contribution match (many of which were [suspended](https://money.com/401k-match-cuts-coronavirus/) in the early days of the pandemic) this year, according to a survey conducted by Callan LLC cited by the *Journal*. And more than a third of workers surveyed by Betterment said that their employer began offering new financial wellness benefits — including 401(k) programs and matching programs as well as wellness stipends — over the course of the past year. ## How to take advantage of 401(k) benefits A 401(k) account isn’t the flashiest investment opportunity, but these retirement vehicles can pay off big time in the long run. The number of [401(k) millionaires](https://money.com/401k-millionaires-retirement-accounts-record-high/) (meaning those whose accounts were worth $1 million or more) hit an all-time high last year, and the average 401(k) balance at the end of the third quarter last year rose to a record high of [$135,700](https://money.com/5-stats-to-start-investing/), according to Fidelity Investments. If your workplace is sweetening its 401(k) offerings, now is a great time to take advantage. As always, make sure you’re contributing at least enough to earn a match if one is offered. If you can afford to put away more, it’s a good idea. Experts generally recommend saving somewhere between 10% and 15% of your income in a 401(k) account. The Internal Revenue Service increased the [401(k) contribution limit](https://money.com/401k-contribution-limit-2022/) to $20,500 (not including employer match dollars) in 2022, up from $19,500 in 2021. Those aged 50 and older can save an additional $6,500 in catch-up contributions. ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/401k-benefits-improve-great-resignation/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Business", "item": "https://money.com/business/" }, { "@type": "ListItem", "position": 3, "name": "Employee Benefits", "item": "https://money.com/employee-benefits/" }, { "@type": "ListItem", "position": 4, "name": "Employers Are Boosting 401(k) Benefits to Compete for Workers Amid the Great Resignation" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/401k-benefits-improve-great-resignation/#webpage", "url": "https://money.com/401k-benefits-improve-great-resignation/", "name": "Employers Are Boosting 401(k) Benefits to Compete for Workers Amid the Great Resignation", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2022-01-18T20:35:10.000Z", "mainEntity": { "@id": "https://money.com/401k-benefits-improve-great-resignation/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/401k-benefits-improve-great-resignation/#breadcrumb" }, "dateModified": "2024-04-17T12:49:51.000Z" }, { "@type": "Article", "headline": "Employers Are Boosting 401(k) Benefits to Compete for Workers Amid the Great Resignation", "articleSection": "Business", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2022/01/News-401K-Popular-Job-Perk-2022.jpg", "width": 2685, "height": 1806, "caption": "News-401K-Popular-Job-Perk-2022" } ], "author": [ { "@type": "Person", "name": "Sarah Hansen", "url": "https://money.com/author/sarah-hansen/", "@id": "https://money.com/author/sarah-hansen/#author", "description": "Sarah Hansen is a senior writer at Money covering all things personal finance. 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