When it comes to managing your retirement savings, you’ll find that grabbing the low-hanging fruit goes a very long way in terms of your long-term results. Five simple moves will ultimately make a substantial difference in the amount you’re able to save, so make these incremental changes and reap the benefits.
1. Increase your 401(k) contributions by 1%
Even a 1% increase can make a tremendous difference in the ultimate size of your retirement savings balance. For simplicity, let’s assume you earn $100,000 annually and currently contribute 6% of your salary to your company’s 401(k) plan. Let’s also assume you’ll never get another raise again and your contribution percentage stays consistent throughout your working career.
There’s a significant difference in your ending retirement balance by simply requesting a 1% increase of your annual contribution percentage. It’s easy to talk to your employer to bump up your contributions in just a few minutes.