Empower Strategist Warns Against Common Retirement Saving Mistakes
Marta Norton identifies insufficient 401(k) contributions and excessive stock exposure as the primary risks facing American retirement savers.
Chief investment strategist at Empower Marta Norton identified two primary mistakes Americans make with retirement savings: insufficient 401(k) contributions and excessive stock exposure. Norton noted that many workers fail to contribute enough to secure their full employer matching contributions, a gap that Financial Engines estimates results in a collective $24 billion annual loss.
Norton also warned that a do-it-yourself approach to investing often leads to over-allocation in equities. This trend is particularly risky for baby boomers and older Americans who are more vulnerable to market corrections. According to a report from Westworld, over 25% of baby boomers maintain aggressive stock allocations that exceed recommended targets for their age, increasing their exposure to sequence of returns risk during market downturns.
