The first-of-its-kind boost is based on the new Secure 2.0 law, which allows retirement plans to provide financial incentives to save.
Human Interest's plan has some limitations. For one, it's only accessible to people who work for the 16,000 companies that have 401 plans through the company. In other words, people who want to open up an IRA or other type of individual retirement account to get the cash-back offer are out of luck.
Human Interest is providing the $250 cash-back offer to middle- and low-income workers who earn less than $60,000, which represents roughly half of the employees who have 401 plans through the company, Schneble said. The company picked that number because it's about the average income for workers. "What we saw, not surprisingly, is the savings rate goes from 80% in the top quartile [of income earners] to 20% at the bottom quartile," he added."Those who make less, save less."
To receive the money, workers must make retirement contributions between June 1, 2023, and January 1, 2024, and contribute at least 8% of their salary to their savings. Once the worker qualifies for the cash-back offer, they'll receive the award through a Visa or Mastercard prepaid debit card or similar gift card.
"If we could get 5% to 10% of people saving for the first time, that would be amazing," Schneble said.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Mother of fallen Chicago Police Officer Aréanah Preston faces daughter's alleged killers in court“It's nice to get letters from the president, and it's nice for the mayor to say things about Aréanah in his speech, but we need action. We need tougher laws. We need people to stand up, we need people to raise their kids correctly. We need parents to be accountable for their kids' actions. And most importantly we need justice for Aréanah,' said Dionne Mhoon, mother of Aréanah.
Read more »
Secure Your Load Every Day | Department of TransportationToday is National Secure Your Load Day, something that’s crucial to keep in mind everyday. Whether it’s a small grill or a king size mattress, it’s extremely important to call 911 when you see road debris. It could actually save someone’s life. MORE:
Read more »
Secure your data with a lifetime subscription to this 1TB cloud storage service for $119.97The only cloud storage software that refrains from tracking its users is on sale.
Read more »
DKB drops first set of concept photos for 'I Need Love' | allkpopBrave Entertainment set the stage for a thrilling summer on May 24, 2023, as they revealed that the dynamic K-pop group, DKB, is gearing up for a com…
Read more »