5 Ways to Spice Up Your 401(k) Plan In 1 Day

Despite a robust upswing in the U.S. stock market, American workers continue to struggle with low retirement savings rates.

A 2016 study by GoBankingRates states that 56 percent of Americans have less than $10,000 saved for retirement and one-third of U.S. adults have no retirement savings at all.

A separate study from Vanguard notes that the average 401(k) fund only holds $101,650 (most investment experts suggest having at least $500,000 saved for retirement), and that 38 million U.S. adults have no retirement account assets at all.

[See: 12 Steps to a Stronger 401(k).]

Don't make those mistakes, especially when companies are making it easier than ever, with generous employee matching programs and automatic savings deductions, to benefit from 401(k) plans.

But if you feel you're 401(k) savings campaign is in a rut, and that you're not saving enough for retirement, don't ignore the problem in hopes that it will go away on its own. Instead, take direct action to spice up a stagnating 401(k) plan, using the following tips.

Be diligent about maxing out on the employer match. "The best thing anyone could do, if they are not already doing it, is to contribute the full amount up to the employer match," says Adam Straseske, a money manager at Red Oak Financial Asset Management, in Round Rock, Texas. "Even if the funds themselves don't perform, the matching from company funds to your 401(k) can already be a great return."

According to the Bureau of Labor Statistics, the average employer 401(k) match stands at 3.5 percent and many go as high as 6 percent. That's free money, and it's your fastest path to more retirement savings. Ask your company's human resources about maxing out today.

Increase your 401(k) plan contribution rate today. "Increase your contribution rate as much as you can," advises Jon Graff, director of participant services at Wells Fargo Institutional Retirement and Trust. Even a small amount can translate to bigger savings in retirement when you factor in compounding growth over the course of your career, Graff points out.

"Ten percent is a good target to strive for, but contributing the maximum amount allowed is even better," he says.

If you get a raise or bonus, split 50 percent off and plow it into your 401(k) plan -- it's money you won't even miss. Or, ask your employer if an automatic 401(k) contribution hike is available -- it comes right out of your paycheck and will help boost your retirement savings.

Spend an hour reviewing your plan. Life changes as you grow older, and your retirement goals and needs change as well. That's why it's so important to spend some time reviewing your 401(k) plan and reallocating assets, if needed. One study from Aon Hewitt showed only 14 percent of employees surveyed actually rebalanced their 401(k) plans -- that's a big no-no, retirement planning expert say.

[See: 9 Things to Know About Robo Advisors.]

"You have to review your investment allocation strategy," Graff says. "Chances are you haven't looked at this in a while, and life events may warrant a more or less aggressive allocation. If your 401(k) plan offers an automatic rebalancing feature, consider the advantages of having this done for you periodically."

Fight high fees with robotics-based funds. "401(k) plan fees and expenses can have a big impact on long-term returns," says Scott Schneider, president of Zacks Advantage, in Chicago. "Reducing fees and expenses wherever you can help kick-start 401(k) plan returns."

Schneider advises asking your employer about lower-fee investment vehicles, including so-called robo funds, in your 401(k) plan rotation.

"More and more robo advisors are offering 401(k) solutions for employers," he says. "If your company doesn't have that option, ask if they can explore expanding their investment options to include a robo advisor or at a minimum, an all ETF/index fund, balanced portfolio option."

Invest in stocks. Since 1926, according to data compiled by Ibbotson Associates, the average annual return for large-capitalization common stocks is 10 percent. Government and corporate bonds return around 6 percent, while cash is in the neighborhood of 3 percent.

"Time is the greatest ally of the investor, as time allows for investment return compounding, and stocks compound at the fastest rate," says Robert R. Johnson, president and CEO of The American College of Financial Services. "None other than Nobel laureate Albert Einstein is rumored to have said that 'compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn't, pays it.'"

[See: 7 of the Best Stocks to Buy for 2018.]

All of the above 401(k) planning moves can be made in less than a day. So, spend some time spicing up your 401(k) as soon as possible. Years from now, you'll be thanking yourself in retirement for taking the time to do so.

Brian O'Connell is a contributing financial writer for U.S. News & World Report. A former Wall Street bond trader and the author of two best-selling books; "The 401k Millionaire" and "CNBC's Creating Wealth", he has 20 years experience covering business news and trends, particularly in the financial, technology, political and career management sectors. His byline has appeared in dozens of top-tier national business publications, including CBS News, Bloomberg, Time, MSN Money, The Wall Street Journal, CNBC, TheStreet.com, Yahoo Finance, CBS Marketwatch, and many more. Visit his web site at: https://brianoco.contently.com/. Or, visit this Amazon.com link for a list/review of some of his book titles. Reach out to him on LinkedIn.