With the SHARE raise coming in October, this is a good time to think about starting or increasing your 401K deduction. Some folks choose this time to increase their contribution because they say they won't miss the money as much if the deduction starts at the same time as the raise.

While all SHARE members automatically accrue toward retirement through the Defined Benefit Pension, the UMass Memorial 401k plan allows you to save for retirement, pre-tax, with UMass Memorial contributing too. If you’ve been to a SHARE Retirement Training, you know that experts retirement say we should think of a solid retirement income as a three-legged stool, with the pension serving as one leg, Social Security as a second leg, and your total savings functioning as the third leg.

Though the coming raise is designed to grow your income ahead of inflation, lots of people need that raise to live on. Deciding the save money with the 401K is a tough choice for many SHARE members. The younger you start, the less you have to take out of your check each week to reach your goals.

Memorial CT Technologist and SHARE Executive Board Member Jay Hagan has served as a member of the SHARE team that has negotiated with management about the current retirement benefits. “I think a lot of SHARE members don’t realize they’re leaving money on the table if they don't save through the 401k,” he says. “My financial advisor tells me, 'if you can afford it, the employer-match is really free money.' You could think of it as the hospital paying you to participate. If you don't use the match, it's like giving the money back.”

UMass Memorial adds $.25 for each dollar you contribute to your 401k, matching up to 1% of your pay. The importance of investment savings increases in 2017, when the hospital will phase-in changes to the pension accrual rate. At that point, the UMMHC match is scheduled to increase to $.50, and up to 2% of your pay.

If you have questions about SHARE’s negotiated retirement benefits, please contact the SHARE office. If you have questions about your own 401k, contact Fidelity Investments at 800-343-0860, or log on to your Fidelity account at www.fidelity.com/atwork.