Most of us will spend at least 40 years in the workforce, and while that sounds like a lot of time, if you ask any retiree, they’ll probably tell you otherwise. The days and weeks might pass slowly, but the years keep getting faster.

That’s why it’s important not to put off retirement savings any longer. If you can afford to save for your future, it’s best to begin making regular contributions right away. You should also consider these four steps to maximize your gains. If you’re consistent, they could even make you a millionaire by 2050.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »

Image source: Getty Images.

1. Claim your full 401(k) match if you’re eligible for one

Claiming your full 401(k) match should be high on your priority list unless you cannot afford to have anything withheld from your paycheck. A 401(k) match could be worth thousands of dollars today, and it could grow to be worth tens of thousands of dollars after you’ve invested it for a couple of decades. But you have to put money in your own 401(k) to get this match, and you must do so by the end of the year.

Check with your plan administrator if you’re unsure how your company’s matching formula works. Once you know how much you must contribute to get the full match, divide this by the number of pay periods left in the year to determine how much you must defer from each paycheck.

2. Choose low-cost investments

All investments have fees, which eat into your profits, but some charge more than others. Target date funds, for example, are popular 401(k) investments because they enable you to be pretty hands-off, but some of them are costly.

Index funds could be a better choice for those looking for a low-cost option that diversifies their savings. These are bundles of investments that mimic the performance of a market index, like the S&P 500. Some of these have expense ratios — annual fees — as low as 0.03% of what you have invested in the fund. That’s just $3 for every $10,000 you have invested in the fund.

3. Contribute 10% to 15% of your income

The exact amount you’ll have to save per month to reach your retirement goal depends on your current retirement savings balance, how many more years you have left in the workforce, and the type of lifestyle you want in retirement. But a general rule of thumb says you should probably save at least 10% and maybe closer to 15% of your income for retirement each year.

Unfortunately, not everyone can do this. If you can’t afford to save that much right now, start smaller. Save as much as you’re able to, and aim to increase your contributions by 1% of your salary each year. You may also be able to increase your retirement account contributions when you get a raise.

4. Take advantage of catch-up contributions if you’re able to

Older workers who weren’t able to save as much for retirement as they wanted to when they were younger may be able to make up for this now by taking advantage of catch-up contributions. These are additional contributions adults who will be 50 or older by the end of the year can make to retirement accounts.

In 2025, adults under 50 can contribute up to $7,000 to an IRA, while those 50 and older can save up to $8,000. The extra $1,000 is a catch-up contribution. The standard 401(k) contribution limit this year is $23,500, but those aged 50 to 59 and 64 and older may contribute up to $31,000. For the first time in 2025, those aged 60 to 63 can make an even larger catch-up contribution, bringing their maximum 401(k) contribution to $34,750.

Obviously, taking advantage of this requires a high income. If you don’t have the extra cash you need, fall back on some of these other tips. But keep catch-up contributions in mind for the future if your income increases.

The $22,924 Social Security bonus most retirees completely overlook

If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $22,924 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after. Simply click here to discover how to learn more about these strategies.

View the “Social Security secrets” »

The Motley Fool has a disclosure policy.