Your 401(k) plan: 5 smart moves to make in 2021

First of three parts.

More than half of Americans feel they just aren't saving enough for retirement, according to a 2019 Bankrate survey. But for those who have fallen behind, it's always a great time to take stock of your 401(k) plan and get moving on ways to set you up for greater wealth and financial security in your golden years.

A 401(k) is an employer-sponsored account that allows you to defer the taxes on your investments until retirement, meaning you can roll up more money faster.

As a bonus, many employers contribute matching funds to encourage you to save, offering you free money for something that is already good to do. (Bankrate's complete guide to 401(k) plans is available at bankrate.com/retirement/401k/.)

"The biggest mistake one can make is not saving for retirement at all," says Kevin Driscoll, vice president of advisory services at Navy Federal Financial Group. "If you're not investing in your retirement at all, you're leaving money on the table. Anyone can take control of their finances – it just requires proactive effort."

Bankrate spoke with a number of financial experts to breakdown the top ways to set up your 401(k) to thrive in 2021 and beyond.

Over the next three weeks, we'll outline five actions that focus on small changes, and then you can let stocks do what they do best: go up over time.

Action 1: Act now.

The best advice according to experts is to resolve to act now, even if your contributions are modest. Many workers set up or adjust their retirement plans as the new year begins, but you can set up or adjust your plan at any time.

"The new year is a time to review retirement savings goals and make sure 401(k) benefits are maximized," says Ed Farrington, executive vice president at Natixis Investment Managers.

Natixis surveyed Americans with access to a 401(k) and found that they understand the value of investing for the future, even if they don't always do it.

The 2017 survey "found that millennials, for instance, are buying homes, raising families and paying off school debt.

Only one in four (25%) is focused on retirement planning, says Farrington. "The same survey revealed that baby boomers' biggest regret about retirement preparation is that they didn't start sooner."

The more time you give your money to grow, the greater its returns are likely to be over time. Act today to get your 401(k) in order or to start investing.

Bankrate's 401(k) calculator can help you see where your savings stand.

James Royal writes for Bankrate.com.