In an analysis of group savings plan members, Fidelity Investments has found that almost half (49%) are not taking full advantage of contributions from their employer.

In some instances, employees are forgoing as much as $1,600 a year in matching contributions from their employer. This information came from research into the behaviours of group savings plan members with plans administered by Fidelity Investments.

Fidelity’s research found that over 37% of members eligible for a matching contribution from their employer are not contributing anything to their group savings plan, missing out on an important way to save for their retirement. Fidelity also identified an additional 12% of members, while contributing to their company plan were not maximizing their own contributions. This means that they are not eligible to receive the full matching contribution from their employer, leaving behind as much as $900 a year.

“Increasingly, the responsibility of saving for retirement is being shouldered by individuals. Yet when presented with what amounts to free money from their employer, almost half of Canadian group savings plan members are simply choosing to not take full advantage of this benefit,” said Stuart Graham, executive vice president, retirement services, “The biggest challenge that employers face today is that many plan members lack the interest, knowledge, time or skills to make the most appropriate choices when it comes to their group plan.”