This Simple Change Could Boost Your Retirement Savings by $33,000 to $600,000

These days, it's not easy for everyone to dig deeper into their wallets and save more for retirement. Yet many of us don't realize how big of a difference it can make 10 years or more down the road.

What if I told you that saving just a little more of your salary could add tens or hundreds of thousands of dollars to your retirement fund?

I'll show you how it works, as well as an easy way to get started.

The impact of saving 3% more

Most experts recommend saving 15% of your income for retirement, including any 401(k) match. But the average 401(k) saver contributes 12%, according to Vanguard.

It seems like a small difference at first blush. For the average person, it might amount to $100 to $200 per month. But in the long run, the difference it makes is gigantic.

Here's how much more a typical worker could save by age 65 if they contributed 15% of their salary instead of 12%:

• Starting at age 25: +$603,000
• Age 35: +$307,000
• Age 45: +$119,000
• Age 55: +$33,000

The earlier you start, the better, but even late-career bumps can make a big difference.

The assumptions

A lot of assumptions go into the numbers above, so your results could be much different. That doesn't change the fact that a small increase in contributions can make you a lot richer by the time you retire.

But just so you know that I'm not pulling the numbers out of thin air, here's what I assumed:

• Starting 401(k) balance is the national median for each age, according to Vanguard
• Income is the national median for each age, according to the BLS
• Income increases by 4% per year going forward
• Investments earn 7% per year -- a conservative estimate for a stock-heavy retirement fund

And my real-life experience backs this up. For 13 years, I have:

• Saved 15% of my salary in a 401(k)
• Gotten raises averaging a little over 5% per year
• Earned nearly 9% per year on my investments (with 90% of my portfolio in stock market funds)

At age 38, I'm on track to retire with a higher income than I earn now.

So there's nothing fantastical about the numbers above. Saving a little more money now could mean retiring with five or six figures more to your name.

How to ramp up your retirement savings

If you're far from the 15% per year that experts recommend, that's OK. Start small, and start now. As the numbers above show, the more time your money has to grow, the more your savings will snowball.

If you have a 401(k)

If you have a 401(k) through work, then here's a quick checklist:

• Start by making sure you're contributing at least enough to earn your full employer match, if one is offered. That's free money, and we never say no to that.
• Raise your contribution until it's at least 15%, including any match. If your budget is tight, ratchet it up by 1% every year or every time you get a raise.
• Look into your 401(k) investment options. Make sure that you understand them and that you're not investing too conservatively. If you're 45 and half your 401(k) is invested in low-growth assets like bonds, then you may not reach your savings goal.

If you don't have a 401(k)

The first thing you should do is open an individual retirement account (IRA). These accounts have the same tax benefits as 401(k)s.

You'll need to pick investments on your own. I suggest meeting with a fiduciary financial advisor -- that's someone who's legally bound to act in your best interests -- to help you decide what to buy. In the near term, you might start with something simple and low-fee, like an S&P 500 index fund.

You can contribute up to $7,000 per year to an IRA ($8,000 if you're 50 or older). If you max that out, then you can start investing through a regular brokerage account. It'll work just like your IRA, but without the tax breaks.

One of our favorite brokers for IRAs is Robinhood. It offers a 1% match on IRA contributions -- a rare perk in the brokerage world.

To learn more and open an account, check out our full Robinhood review.