Question

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Explanation:

a. "Free money" refers to employer matching contributions: when an employee contributes to their 401(k) or pension, many employers match a portion of that contribution, essentially adding funds to the employee's retirement account without the employee having to earn that matching amount directly through wages.
b. She has a strong good point. Employer matching contributions are essentially extra funds for retirement that require only the employee to contribute their own money to qualify. This is a guaranteed return on the portion of the employee's contribution that is matched, which significantly boosts retirement savings over time. However, this only applies if the employer offers a match; not all pensions or 401(k) plans include this benefit, so the "free money" is not universal.

Answer:

a. She means employer matching contributions: when you contribute to these accounts, many employers add a matching amount of your own contributions to your retirement fund, which is extra funds you don't earn directly through regular pay.
b. Yes, she has a good point. Employer matching contributions are essentially risk-free added funds that grow with your retirement savings, drastically increasing the total amount you have for retirement. However, this only applies if the employer offers a match, so it is not a feature of all such retirement plans.