Should I incorporate the employer match in Savings Rate?

Abby Morton
Abby Morton
  • Updated

Generally, advisors choose to leave the employer match out of a client’s savings contributions, taking the more conservative approach. This is primarily because if that client were to change their place of employment that match could change; however, the employee contribution can stay the same. You’ll need to consider what the client’s behavior is and report that accurately.

However, if you want to include the employer match, you’ll need to add it to the total savings contribution for the given asset and to the clients total income.

For example, if a client contributes 6% (or $6,000) and the employer matches 4% (or $4,000) the client should enter $10,000 as total contributions and increase their income by $4,000 (the amount of the employer match).


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