Psst. It's Safe (and Important) to Open Your 401(k) Statement

If you're in the camp that has resisted looking at your 401(k) statements since the markets dropped off the cliff of all cliffs in 2008, it's time you took a peek. Chances are you may be in for a nice surprise. While total retirement account savings are still about 17 percent lower than the $8.6 trillion peak in the third quarter of 2007, we've seen quite a rebound from a year ago: Check out the mood-enhancing chart courtesy of the Retirement Policy program at the Urban Institute:

As nice as the recent trend line is, it's not exactly cause for celebration. Even at $8.6 trillion in 2007, Americans were running way short on retirement savings. So no resting easy that you're back on track. You may just be back from the abyss. Here's how to make sure you truly "get-ahead" in the coming years:

• Check your contribution rate. Under 10 percent and it needs to be raised. No excuses. If you can't make it all the way to 10 percent in one fell swoop, then aim to bump it up 1 percentage point this year, that's moving you in the right direction. And keep bumping at least once a year.
• Rebalance. If you've left your account on autopilot for the past year it's likely you are underweight equities.
• Set the right investment horizon. After the huge market losses it's understandable to feel cautious. But at the same time you need to remind yourself what you are investing for. The date you hope to retire is not your end-date. If all we needed our nest eggs to do is get us to retirement life would be so much easier; but in fact, you need your nest egg to help support you all the way through retirement. For a 65-year-old who retires today that's typically another 20 years. (For a simultaneously fun and sobering experience, calculate your estimated life expectancy.) When you consider that a fairly normal 4 percent inflation rate cuts the purchasing power of $1 in half over 20 years, it becomes a bit more clear that you need to push yourself to save more, and save smarter by staying properly allocated for your life expectancy.

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