Here's why Americans are contributing more to their 401(k) plans

Here's why Americans are contributing more to their 401(k) plans  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  VIEW IN BROWSER | SUBSCRIBE WED, JAN 08, 2020 YOUR WEALTH Editor's Note If you are among the millions of Americans who contribute to a 401(k) plan, there's some good news to report. Apparently, many of you got the message and have been contributing a greater share of your salaries to your 401(k) accounts. To that point, investors have stashed away an average of 7.7% of their pay in 2018, up from 6.8% just two years earlier. That increase may not sound like a big deal, but it can have substantial impact on retirement savings over time. For example, a 35-year-old earning $60,000 a year would save an extra $85,500 by retirement age by increasing the 401(k) contributions by just 1%. Now, for those of you who might need a little push, here's what you need to know to maximize your 401(k) plan. First, get an understanding of the types of investments offered in your firm's plan. Find out which are best suited for you and how to manage the account going forward. It's important to know that 401(k) plans typically offer a lineup of mutual funds that range from conservative to aggressive. Before choosing an investment, you must consider your own risk tolerance, your age and the amount you feel you need to retire. Do some research and avoid selecting funds with high fees and make sure to diversify your investments to lower risk. Once you have established a portfolio, monitor its performance and rebalance when necessary. At the very least, contribute enough to maximize an employer's 401(k) match. This is must-do strategy. It's free money you receive from your employer after you make pre-tax contributions to your retirement plan from your paycheck. If you fail to meet the match, you are basically leaving money on the table. For those who are finding ways to contribute a greater share of their salaries each year, keep up the good work. For the others, get moving. For more cool stuff like this, please follow me on Twitter @jimpavia and check out CNBC's Financial Advisor Hub and CNBC + Acorns Invest in You: Ready. Set. Grow. Jim Pavia @JIMPAVIA Here's why Americans are contributing more to their 401(k) plans Americans are stashing away more of their salaries in their 401(k) plans, due partly to the greater share of businesses automatically enrolling workers at higher savings rates. ABLE accounts let the disabled plan, dream and save big—without risking essential federal benefits ABLE accounts are simple to set up and have low minimums, so disabled people can save for the future. 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