How Your 401k Auto Enrollment Default Rate Costs You Thousands

Episode 27 of The 401k Podcast with Fexingo dives into the auto enrollment default rate—the percentage of your salary that gets automatically deducted into your 401k when you first join a company. Lucas and Luna explain why the typical default of 3% is a dangerous trap, how it compounds into a six-figure shortfall by retirement, and what you can do to override it. They use the example of a 25-year-old earning $55,000 who leaves the default rate versus one who immediately increases to 10%, showing a difference of over $300,000 at age 65. The episode also covers recent trends where employers are raising defaults to 6% or even 10%, and why you should never accept the default without thinking. #401k #AutoEnrollment #DefaultRate #RetirementSavings #CompoundInterest #EmployerMatch #PlanDesign #BehavioralFinance #Fiduciary #SalaryDeferral #RetirementPlanning #PersonalFinance #Investing #FinancialLiteracy #WealthBuilding #FexingoBusiness #BusinessPodcast #Finance Keep every episode free: buymeacoffee.com/fexingo