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Seven Easy Ways to Boost Your 401(k)

Sadly, 401(k)  plans may not be the best vehicle to guarantee us a secure retirement that will last through the years. Too many variable factors – the market’s performance, the timing of  our retirement, the cost of our plan, our asset allocation and so on – can influence whether we’re able to save the sobering amount financial planners say we’ll need.

By the looks of it, we’re in deep trouble. Financial advisers say we need to have saved eight to 11 times our salary by the time we retire to afford a similar lifestyle.  But a Fidelity Investments analysis of 401(k) plans for workers 50-plus tells a different story. Those of us nearing retirement, ages 55 to 59, have saved an average of $134,600. And workers right at retirement’s doorstep, ages 60 to 64,  and 65 to 69, only saved on average $133,100 and $136,800, respectively.

Fidelity says these averages at the end of 2012 are record highs for 401(k) plans.

Saving enough to live comfortably in retirement seems daunting, but there are steps you can take to maximize your success:

Photo credit: Jasleen Kaur via flickr.com

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