If you're contributing to your workplace 401(k) plan, you're already laying important groundwork for your retirement savings — but the key is to make sure you're maximizing all that work.
It can be smart to try to squeeze as much growth out of your 401(k) as possible before you're ready to retire. This way, you simply retire with more money.
Consider making these tiny adjustments to get the very most out of your 401(k).
Contribute enough to max out your employer match
Many employers automatically enroll you in a 401(k) plan from day one, but not all may have you automatically contributing enough to take full advantage of the employer match. The employer match is where your workplace contributes a certain dollar-for-dollar amount to your 401(k) for you. Think of it as free money being contributed to your retirement plan.
Employers usually match all of your contributions up to the first 3% to 6%. The more you contribute, the more they can match up to that cap.
Double check your employer's plan to make sure you know the maximum contribution match amount — then make sure you're contributing enough to take full advantage of it.
Increase your contributions by at least 1%
For 2026, employees can contribute up to $24,500 to their 401(k). Contribution limits are use-it-or-lose-it, so if you don't hit that $24,500 maximum this year, you can't just make up for it next year. The limit for catch-up contributions is higher. That's why it's important to check in with your finances and up your contributions each year, if you can.
Vanguard's "How America Saves" report found that only 14% of plan participants maxed out their contributions in 2024, the most recent data available. It may not always be easy to max out your 401(k) contributions, and an extra 1% per year may not seem like much but every dollar can go a long way, especially when your investments have 30+ years to grow.
Some employers let you opt in to automatically increase your contributions by 1% each year. Enrolling in this option lets you set it and forget it, but you can always increase your contributions at any point in the year.
Enroll in your student debt benefit
One unique workplace benefit not offered by all employers is known as a 401(k) student loan match. It's where you make your normal student loan payment and your employer contributes that same amount to your 401(k).
It's intended to make it easier for employees to pay their student loans and still contribute to their 401(k) fully. Not all employers offer this benefit and for the ones that do, they may only match your student loan payment if you don't already maximize the normal employer 401(k) match.
If your student loan payment is standing in the way of growing your retirement savings faster, this workplace perk could be a simple solution.
Invest in less conservative assets
Most employers offer standard investment options like target-date funds, but others may also offer index funds, mutual funds and ETFs. Target-date funds tend to be a more conservative investment. A Barron's analysis of Morningstar data found that between 2005 and 2024, the average annual return on a target-date fund was just 6.6%. Index funds that track the S&P 500, on the other hand, tend to return around 10% annually, though past performance is no guarantee of future results.
So, while target-date funds may be the desired asset for older employees who are nearing retirement, they may be too conservative for younger employees who are still 30 to 40 years away from retirement — and they may be killing your portfolio's growth potential.
If you have the risk appetite for more aggressive investments, you can always change your asset allocation by logging into your 401(k) plan. Of course, for advice that's more tailored to your specific circumstances and goals, be sure to work with a financial professional.
Plus, how to invest outside of your 401(k)
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If you don't have access to an employer-sponsored 401(k) plan or you're already doing everything you can to get as much value out of it as possible for the time being, consider these alternatives to saving for retirement.
Enter traditional IRAs and Roth IRAs. Companies like Fidelity and Charles Schwab are financial institutions that have been around for a long time and offer traditional and Roth IRAs with tons of investment options, including individual stocks. You may even get access to their in-house financial advising services for a small fee.
Fidelity Investments
Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No minimum to open a Fidelity Go® account, but minimum $10 balance for robo-advisor to start investing.
Fees
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Bonus
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Investment vehicles
Robo-advisor: Fidelity Go® IRA: Traditional, Roth and Rollover IRAs Brokerage and trading: Fidelity Investments Trading Other: Fidelity Investments 529 College Savings; Fidelity HSA®
Investment options
Stocks, bonds, ETFs, mutual funds, CDs, options and fractional shares
Educational resources
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Pros
- No commission fees for stock, ETF, options trades
- No transaction fees for over 3,400 mutual funds
- Fidelity Go® portfolios use Fidelity Flex® mutual funds with zero expense ratios
- Human advisors manage day-to-day Fidelity Go® portfolio decisions
- Unlimited 30-minute coaching calls with a Fidelity advisor for accounts of $25,000 and over (at no extra cost)
- Tax-loss harvesting available on taxable Fidelity Go® accounts with $25,000 or more
- Abundant educational tools and resources with research from 20-plus independent providers
- 24/7 customer service
- Over 100 brick-and-mortar branches across the U.S. for face-to-face support
Cons
- Fidelity Go® has a 0.35% advisory fee per year for balances of $25,000 and over
- Fidelity Go® invests only in Fidelity Flex® mutual funds (no third-party ETFs or individual securities available)
- No socially responsible or ESG portfolio option through Fidelity Go®
- Some of Fidelity's mutual funds require reaching specific thresholds
- Reports of platform outages during heavy trading days
Charles Schwab
Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No account minimum for active investing through Schwab One® Brokerage Account. Automated investing through Schwab Intelligent Portfolios® requires a $5,000 minimum deposit
Fees
Fees may vary depending on the investment vehicle selected. Schwab One® Brokerage Account has no account fees, $0 commission fees for stock and ETF trades, $0 transaction fees for over 4,000 mutual funds and a $0.65 fee per options contract
Bonus
None
Investment vehicles
Robo-advisor: Schwab Intelligent Portfolios® and Schwab Intelligent Portfolios Premium™ IRA: Charles Schwab Traditional, Roth, Rollover, Inherited and Custodial IRAs; plus, a Personal Choice Retirement Account® (PCRA) Brokerage and trading: Schwab One® Brokerage Account, Brokerage Account + Specialized Platforms and Support for Trading, Schwab Global Account™, Schwab Organization Account and Schwab Trading Powered by Ameritrade™
Investment options
Stocks, bonds, mutual funds, CDs and ETFs
Educational resources
Extensive retirement planning tools
Terms apply.
Pros
- $0 minimum deposit for active investing
- No commission fees for stock and ETF trades and no transaction fees for over 4,000 mutual funds
- Offers extensive retirement planning tools
- Users can get on-demand advice from a professional advisor/Schwab expert
- Robo-advisor Schwab Intelligent Portfolios® available as a no-fee automated service option (with Premium version available for a fee)
- Award-winning thinkorswim® trading platforms and all their cutting-edge tools are now available at Schwab.
- 24/7 customer support access by phone or chat
- Charles Schwab offers over 300 brick-and-mortar branches across the U.S. for in-person support
Cons
- Specific transactions may require commission fee
- Robo-advisor Schwab Intelligent Portfolios Premium charges a one-time planning fee of $300, then a $30 per month advisory fee. For that price, you get unlimited 1:1 guidance from a CFP, interactive planning tools, plus a personalized roadmap for reaching your goals
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