Experts agree that one of the easiest and most beneficial strategies for saving for retirement is maxing out a 401(k) or individual retirement account (IRA) — the tax advantages are often unparalleled. In 2019, you can elect to contribute a percentage or dollar amount of your pretax salary to a 401(k) if your company offers it, up to $19,000, or $25,000 if you're over 50.
The pretax dollars funneled into a 401(k) not only grow exponentially but also reduce the contributor's taxable income by that amount. Plus, some companies offer to match contributions up to a certain percentage of the employee's elected amount.
According to one study on dual-income couples with access to a 401(k) plan at work, saving is often relegated to one spouse, and that person usually isn't saving enough for both people. In couples where both spouses are saving, the combined contribution rate is just 9.3% of total household income.
The bottom line: There's no harm in reassessing your savings rate to ensure you're getting the best possible benefits.