If it feels like corners are being cut all over, yet your bills just keep going up and up—you’re not alone. 

One of the latest hits to homeowner finances is the cutting of 401(k) matches. While not yet a widespread trend, it’s becoming a real concern as several heavy hitters have made the move.

Case in point: TTEC paused 401(k) matches for its U.S.-based employees, as reported earlier this year. Chief People Officer Laura Butler noted in an employee memo that the pause would last nine months, with the company hoping to resume its 3% match if business performance supports it.

Working out the math

First, calculate the actual size of the hit.

Let’s assume you’re a 61-year-old homeowner who makes $100,000 a year. 

When you were 40—the current median age for a first-time homebuyer—you bought a $750,000 home with a 30-year-mortgage at a 6.5% rate. You made the 20% down payment, so you’re off the hook for private mortgage insurance, which leaves you with a principal and interest payment of $3,792 a month. 

(To keep things simple, we’ll set aside property taxes, home insurance, and maintenance for now.)

At 61, you have nine years left on that mortgage, and you plan to retire at 67. If your company pauses its 3% match for nine months, you miss out on $2,250 in free pre-tax money ($3,000 if the pause stretches to a full year)—and that’s before factoring in lost compound growth over your remaining working years.

Admittedly, that might not seem like a lot, given that the money lost doesn’t even cover one month's mortgage payment. But remember, this is money you’ll need even more when you’re no longer working.

And every penny counts. 

"The more important factor is that the risk usually isn't that one mismatched year will drastically change your retirement or spending plan,” explains Mills. 

“It's that years of lower contributions, higher housing costs, and no plan to replace those lost contributions will truly affect your plan.”