8 ways to accelerate retirement savings

Maximize the match
4 of 8
Maximize the match

Not all employers offer to match their workers' 401(k) contributions. But if you're one of the lucky ones with access to this benefit, grab it. Kiernan says any employee not getting the full amount of an employer's 401(k) match is leaving free money on the table.

"Not only that, the beauty of that money -- as it is with the rest of their company retirement plan -- is the tax-deferred compounding that will create the snowball effect," Kiernan says.

The U.S. Bureau of Labor Statistics reported in May 2010 that 41 percent of workers had retirement savings plans in which their employers matched their contributions up to 6 percent of their earnings, while 10 percent had plans that were matched at a higher level. As for the rate, 53 percent of the plans matched contributions at 50 cents or less on the dollar.

So if your employer plan matches 50 cents on up to 6 percent of your earnings, be sure to contribute at least 6 percent of your pay to get the match. This amounts to a 50 percent return on your money.




Show Bankrate's community sharing policy
          Connect with us

Be An IRA Expert

Lessen the retirement tax bite

Worried about retirement income? Follow these 5 strategies to lessen tax liability.


Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.


Jennie Phipps

Feds fight to thwart ID thieves

The IRS, Federal Trade Commission and Social Security Administration are taking steps to protect consumers from identity theft.  ... Read more

Partner Center

Connect with us