Scrimp on 401(k) Now, Pay Dearly Later

If you take a break from your contributions, your 401(k) account at retirement would have $1,316,483. You stand to miss out on more than 8% of your total retirement dollars by skipping just the next two years of contributions.

And the younger you are, the more critical it is to keep saving. Reason: The more time money has to grow, the greater the impact on your retirement dollars, thanks to the tax-deferred growth in 401(k) plans. This is why financial advisers say the easiest way to save for retirement is to start early.

The importance of these early years means you may even want to increase your contributions in the absence of your company's matching contribution. Many employers limit their matching funds to just a small percentage of an employee's salary. The average employer matches 50% of contributions up to 6% of an employee's contributed salary, according to the

Profit Sharing/401k Council of America. So finding a little extra in your budget to put toward retirement can make a big difference down the road.

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