Even if you feel you’re already doing a solid job of saving up for your eventual retirement, it’s possible you can do even better than you are now. After all, it never hurts to have more than you need, and that’s especially true when you don’t know for certain what’s coming down life’s pipeline. Besides working with local insurance agents to save money on your policies so you have a bit more to kick back into retirement, there’s more you can do to provide yourself with a more comfortable lifestyle in your golden years.
Retrain Your Focus
It’s always best to start as early as possible not only when it comes to saving for retirement, but saving as much as possible for your retirement. Rather than put off restructuring your savings strategy for a later date, do yourself a favor and start refocusing right now. Think about the fact that the extra bucks you start putting back today can compound over time, so don’t miss out on a golden opportunity when it presents itself.
Save Just One Percent More
One percent might not seem like much, but that small sliver can seriously add up over the years. Saving just one percent more for your retirement than you do now can result in a sizeable annual return. Short-term sacrifice for long-term gain is most certainly the name of the game when it comes to saving money and setting yourself up for success later on.
Learn Everything There Is to Know About Your 401(k)
If you currently contribute to your 401(k) account with your employer, you’re most certainly off to a great start when it comes to your retirement. That being said, it’s possible you’re not using your account to its full potential. Sit down with the payroll department to get the specifics on your company’s retirement account to see if you can contribute more without negatively impacting your overall income. For instance, there are considerations to make regarding your tax bracket and how your contributions impact your bracket level. On a related note, be sure you take full advantage if your employer matches any contributions you make to your account.
Make Your Raise Work for You
When you receive a raise, congratulations are most certainly in order, but so, too, is a bit of introspection. Rather than buying more with your raise, why not save more? If you’re comfortable with your current lifestyle and financial outlook, you can divert a portion of your raise towards your retirement account.
Invest Your Tax Refund Rather Than Spend It
If it’s your tax refund you’ve received instead of a raise, you still have a solid opportunity to boost your retirement savings. Specifically, think about putting your tax refund into a traditional or Roth IRA or a myRA. If you like, you can even choose to apply your contribution to your tax return for the current year, or the next tax year; talk with your accountant to determine which would be better for your specific financial situation.
Utilize Catch-Up Contributions
Employees over the age of 50 will do well to look into catch-up contributions for their IRA and 401(k) accounts. These contributions can be of serious help if you didn’t start saving up for retirement when you were younger, or if you weren’t able to contribute as much as you wanted to your retirement accounts. Meet with your employer to explore your options and see what your contribution limits are.
The future isn’t certain, and neither is the state of your retirement. To mitigate potential stress in your later years when you should be enjoying yourself, put back as much money as you can now.