How to Boost Your Retirement Savings
Do you feel as though you need a boost in your retirement savings? And, how can you ensure that you will be ready for retirement?
Updated on Feb 19 2020
Do you feel as though you need a boost in your retirement savings? And, how can you ensure that you will be ready for retirement? There are a number of options that will help you save the maximum amount you can for retirement.
Determine what your retirement goals are
Did you know that one of the biggest financial regrets for Americans is that they didn’t save enough for retirement? In order to know what changes you will need to make to your current savings plan, you’ll need to determine what your overall retirement goals are.
How much do you need in savings to last throughout your retirement? You can use a retirement calculator to help you. When deciding, you need to think about your discretionary spending and where to cut back on costs. How much money will you budget for Christmas presents for the grandkids? Are your weekend golf trips accounted for? These questions and similar ones all need answers before you can start maximizing your retirement.
Do you have the basics covered?
The basics are what you have been advised to do retirement-wise throughout your working career. The basics include:
- Focusing on starting today.
- Contributing to your 401(k) and meet your employer’s match.
- Opening an IRA.
- Taking advantage of catch-up contributions (if you are age 50 or older).
- Considering delaying Social Security.
It is most advisable to max out your 401(k) contributions. If you are unable to do so, it’s important that you at least contribute what your employer is matching. An employer match is free money that you don’t have to do anything to receive, except contribute your part.
Remember, it’s never too late to save for retirement. Retirement can seem so far away, but when you’re dealing with investments, time is money—literally. Even if you are in your 40s, you still have decades of retirement investments to grow.
Delaying Social Security can be an option, as well. Every year that you delay receiving a Social Security payment before age 70, you can increase the amount in the future. While 62 is the earliest you can begin receiving Social Security paychecks, your monthly benefits will increase if you wait until 70.
What discretionary spend can you reduce?
Discretionary spending is non-essential spending such as eating out or other luxuries. Knowing how much money you are using for discretionary expenditures is an essential part of any budget. If you are looking for ways to boost your retirement savings, cutting back on these expenses is an easy choice. You don’t want to cut every non-essential purchase from your budget, but if you are buying a latte five times a week, consider cutting back to once or twice a week. Small choices add up to big savings over the course of decades.
Part-time work could be the answer to maximize your retirement savings
You’ve heard it before, this is the age of the “gig” economy. While Millennials are seeking out part-time options like Uber and DoorDash to help pay down their student loans, those nearing retirement age are also working these jobs and making some extra cash to put in savings.
Part-time retail jobs provide benefits outside of extra money. As you get older, it can be harder to maintain friends and be an active part of your community. With a second job, you’ll have the opportunity to meet new people and get outside the house.
A financial planner can help boost your retirement savings
If you are worried about your retirement savings and feel like they could use a boost, consider finding a trusted financial advisor who can guide you every step of the way. Fiduciary advisors will always act in your best interest, so you can be sure that you are receiving sound advice.
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