Most of us do not plan to work for a living past retirement age. But without a good retirement savings plan you may be headed for a “retirement” that includes a lot of part time or even full time work.

Retirement savings is the least thing on the minds of young college grads who are just out into the work force and beginning to earn a living. But if they are wise and start right away, their retirement savings can compound into great wealth and a nice retirement nest egg.

But workers who are in their 30’s or 40’s and start planning their retirement savings have a lot of catching up to do. If you are in that age bracket and have just begun your retirement savings what can you do to boost that retirement nest egg so that you can enjoy your golden years?

Fill your 401(k)

Most companies offer a 401(k) retirement savings plan. If not, you can easily set up an individual retirement savings account (IRA) at any investment brokerage. A 401(k) retirement savings plan allows you to slide money out of your paycheck before it is taxed, and contribute it into a retirement savings plan available for withdrawal only when you reach eligible age. In addition, a company who sponsors a 401(k) retirement plan will usually match dollar for dollar contribution up to 3% of your gross pay. That’s FREE money given to you for your retirement benefit.

Use the 401(k) retirement savings wisely and take advantage of the benefits. Contribute as much as you can. The IRS limits your personal contribution to $15,500 per year, so if you can, contribute up to or close to that amount as possible. Remember, the IRS limit is only for your contribution. Allow your company to contribute as much as their policy will allow as well.

The funds in a 401(k) retirement savings account are invested, usually in mutual funds, for the duration of the account, adding possible interest returns of 7% to 12% or more into your account. Add that to the continuing contributions you make and the retirement account will grow and grow. The longer you have a 401(k) retirement account the more compound interest growth you can achieve. That’s why younger workers who start a 401(k) retirement savings account end up with a nicer nest egg than do those who start 20 years later.

You can monitor your 401(k) retirement savings account, and are allowed to make changes to the investment options in the account. Your company, or the investment brokerage, will provide a list of the mutual fund investment options. You would be wise to look at each option and see how well each mutual fund is at sustaining growth.

Some mutual funds are aggressive. Some are more conservative. Aggressive funds invest in high growth stocks and bonds, but also higher risk. The returns can be greater, but so can the losses. If you have plenty of time to allow your 401(k) retirement plan to grow, consider assigning a portion of your account to an aggressive fund.

Your best retirement savings strategy, however, is to spread your investment options over different mutual funds with different aggressive and conservative growth strategies. Over the long run your retirement savings will continue to grow and allow you to enjoy retirement without the need for additional work.

source : http://www.moneyspud.com/articles/savings/36-savings/73-saving-more-for-your-retirement.html