1 Smooth retirement savings move you’ll thank yourself for later

Retirement can be incredibly expensive. The average U.S. worker expects to need about $1.8 million to retire comfortably, according to a 2024 survey by Charles Schwab.

While there is no silver bullet when it comes to building a strong nest egg, there are strategies that can make it a little easier. And there’s one move in particular that can seriously boost your savings with almost no effort on your part: Take full advantage of your employer’s 401(k) contributions.

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The easiest way to supercharge your savings

Not all 401(k) plans offer a company match, but if yours does, it’s wise to take full advantage of it. With this benefit, your employer will match your 401(k) contributions — usually up to a certain percentage of your salary. In other words, you can instantly double your savings while barely lifting a finger.

Matching contributions can add tens or even hundreds of thousands of dollars to your savings over time. For example, say you earn $60,000 a year and your employer will match 50 percent of your contributions up to 6 percent of salary — which is the most common type of match, according to a 2024 report from Vanguard. This would add up to $1,800 a year in contributions from your employer.

Let’s also assume that you’re earning a modest 8% annual average rate of return on your investments. At that rate, here’s how that $1,800 per year would accumulate over time:

Data source: author’s calculations via investor.gov.

Note also that these calculations only take into account the employer match itself. Once you factor in your own contributions, you’ll have at least double those numbers.

Employer 401(k) contributions can instantly double your savings, making it much easier to build a robust nest egg. By taking full advantage of this benefit, you’ll be on your way to a more financially secure retirement.