Make the Most of Your Retirement 401(k)

ABC News' Rebecca Jarvis takes to the streets to answer your most common 401(k) questions.
1:40 | 11/05/15

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Transcript for Make the Most of Your Retirement 401(k)
is portraying him in the upcoming movie "Concussion." One of the most popular ways to save for retirement is through an 401(k) And Rebecca Jarvis tells us how you can make the most of yours. Reporter: It's lunchtime in New York City. Mind if I sit for a second and the furthest thing from these folks' minds, their 401(k)s. I don't know anything about retirement. Are you saving for retirement. Yes. How much? I haven't the slightest idea. Do you put money this your 401(k)? No. You don't? They're not alone. A recent survey finding nearly 90% of participants say 401(k)s are a must. But half say their planning can be confusing of how much money do you need for retirement? Oh, gosh. Some percentage, 1%, 2%, 3%. The amount you set aside today should be at least enough to get your erploy's full match, often 50 cents for every dollar you contribute. If you chip in $6,000, that's another $3,000 from them. A tax-free raise. It's all about the match. Because that's the money. Of course. Still, the more you can add early the better off you are. Under 50, contribute up to $18,000 a year. Over 50, and you can do up to $24,000. Where do you put the 401(k) Money. Just invest it and that's all I know. Reporter: The answer, choose a target date fund. These automatically balance your investments, stocks, bonds and cash with a target retirement date in mind. But fair warning they tend to come with higher fees when are you going to retire. Today if it were my choice. Reporter: For "Good morning America," Rebecca Jarvis, ABC news. New York.

This transcript has been automatically generated and may not be 100% accurate.

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