Participants

If you haven't noticed, the days where we can count on the government and our employers to take care of us in retirement are long gone. Social Security is on shaky financial ground, and its health could worsen as baby boomers retire. Meanwhile, company pension plans have become increasingly rare and are virtually nonexistent for younger workers. The bottom line: If you want a comfortable retirement, it's up to you.

For most of us, our 401(k)s will occupy the role that pension plans filled for the previous generation. That fact could be more than a little nerve-inducing. But there's no reason why you can't have a financially secure retirement as long as you avoid making some key mistakes.

Common Mistakes

• Not Investing at All
  
  If you're not putting money into your 401(k) now, keep in mind that the longer you wait to start, the more you'll have to save later in life to meet your financial goals.
  
  Given the math, it pays to start saving now. At the very least, start stashing away enough to take advantage of your employer's matching contributions and pledge to increase your contribution rate every year. Ideally, you should invest as much as you can. For 2010, individuals can contribute as much as $16,500 to their 401(k) and another $5,500 if they're age 50 or above.
• Borrowing from Your 401(k) Plan
  
  Taking a loan from your 401(k) is an example of one of those things that you can do but shouldn't. By doing so, you'll make it harder to meet your goals. The money you take out will miss out on the gains it would have benefited from otherwise. There might be some extreme circumstances where borrowing from your 401(k) is your only option, but it should be a very last resort.

See the Results for Yourself

The results of consistent contributions combined with tax benefits and potential employer matching can be astounding.

Retirement Calculator