Why is it beneficial to sign up for your employer's retirement plan?
A)Most employers match your contributions to their retirement plan.
B)Consumption smoothing can occur only through retirement plans.
C)It is a good way to avoid paying income taxes on all income earned.
D)This is a good way to avoid the need for precautionary saving.

Question

Quizplus · Accepted Answer

Most employers offer some form of matching contribution to their retirement plan. This means that if you contribute a certain amount to the plan, your employer will contribute an additional amount, essentially giving you extra money for your retirement savings. This is a significant benefit that can help you to build your retirement savings more quickly.

Why Is It Beneficial to Sign Up for Your Employer's