Why Every Employee Should Check Their 401(k) at Least Once a Year

Posted on Oct 8, 2025

It’s easy to set up a 401(k) and then forget about it, especially when life gets busy. But the “set it and forget it” approach can cost you over the long term. Checking your 401(k) at least once a year ensures your retirement savings stay on track and aligned with your goals.

First, review your investment allocations. Over time, the mix of stocks, bonds, and other investments in your account can drift due to market performance. What started as a balanced strategy may now be more aggressive or conservative than you intended. A quick review allows you to rebalance your portfolio so it continues to match your risk tolerance and retirement timeline.

Next, examine your contribution levels. Are you saving enough to meet your retirement goals? If you received a raise or bonus during the year, consider increasing your contributions. Even a small boost, like 1% more each paycheck, can add up significantly over decades, thanks to compound growth. Small changes now can lead to a bigger, more secure retirement later.

Don’t forget about beneficiary designations. Life changes—marriage, divorce, or the birth of a child—can make old beneficiary information outdated. Ensuring your beneficiaries are current helps your loved ones receive the funds according to your wishes.

Finally, take a moment to review any fees or plan changes. Plan offerings and fees can shift over time, and staying informed helps you make smart choices that maximize your savings.

A yearly check-in only takes a few minutes but can have a major impact on your financial future. Set a recurring calendar reminder – such as on your birthday or New Year’s - to review your 401(k) annually. It’s one of the simplest ways to keep your retirement plan on track and give yourself peace of mind.

This material is provided for informational purposes only, and is not intended as authoritative guidance, legal advice, or assurance of compliance with state and federal regulations.