The Genius of Saving Your Raises In Your 401(k) Account

The Genius of Saving Your Raises In Your 401(k) Account
AP Photo/Elise Amendola, File

Increasing the amount you save for retirement can feel really difficult. But researchers may have found a trick that significantly increases the chances you'll invest more – and sometimes a lot more. 

According to a recent study published in the Journal of Political Economy, workers who made a commitment in advance to put a portion of future raises toward their retirement were able to increase their average savings rates by 10 percentage points over 40 months. That's a huge impact that can make a big difference in the final amount they end up with as retirees. And it's something that you could do today with no effort on your part.

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