by Andrea Carson | Apr 19, 2023 | Retirement
You’re aware that it’s essential to save for your retirement. For most of us, 100% employer-funded pensions are long gone, and Social Security is only designed to offset a portion of your pre-retirement income.
Most financial advisors recommend that workers save enough to cover 75 to 85 percent of their annual pre-retirement income. With stagnant incomes and rising expenses such as healthcare, food, and housing, it’s challenging for most of us to save for retirement!
Luckily, you can boost your retirement savings, regardless of your age or how strained your existing budget might be.
Use these steps to increase your retirement savings and secure your financial future:
- Save now. Start now if you still need to contribute to a 401(k) or another employer-defined retirement plan
- Start small if traditional contributions of 10% of your income are too much to handle. Try saving just 1 to 2 percent of your gross income. Boost your savings each year by increasing your contribution rate to match the amount of your annual raise.
- You have a 100% instant return on your investment when your employer matches a percentage of your 401(k) contribution. When you enroll in your employer’s plan, contribute at least the minimum to qualify for any match your employer offers.
- Open a traditional or Roth IRA if your employer doesn’t offer a 401(k) plan. Traditional IRAs can help you lower your annual tax bill, free up hundreds of additional dollars to increase your retirement savings. Resist the urge to spend your savings!
- Work longer and retire later. Delaying retirement will boost the amount of your social security benefits and give your savings extra time to grow.
- Early retirees see a permanent reduction of 20% of their estimated benefits. By delaying retirement, you’ll draw a more considerable benefit from Social Security and shorten the length of time that you’ll need to draw upon your retirement savings.
- As you approach retirement age, look for ways to create additional income streams separate from your primary occupation, such as freelancing or starting a small business. Increasing your revenue streams frees up more funds that you can use to bolster your retirement savings.
- Get out of debt before you retire. Debt payments often comprise a large portion of most budgets. Debt also eats up funds that you could use for retirement savings.
- Create a realistic, workable budget that eliminates your debt over a specific time frame.
- Aim to be out of debt before you retire so that you need to save less for your retirement.
- As you decrease your debt, the challenge is to remain disciplined rather than going into debt again or wasting your retirement savings on other expenses.
- Downsize before retirement. As you create a budget, take a hard look at how much your home is costing you. Is it time to consider downsizing to a smaller place with lower costs?
- Many of us relocate during retirement for a warmer climate or to be closer to children and grandchildren. Consider selecting a smaller home with lower costs for operation and upkeep if you move.
- You can downsize more than just your home. Sell off unused items and use the proceeds to boost your retirement savings.
Finding ways to save money for your later years can be difficult and time-consuming. However, following these tips makes increasing the money you save for retirement easier.
by Andrea Carson | Mar 8, 2023 | Retirement
Everyone wishes they had started saving for retirement sooner. If you’re in this situation, saving more is the only way to catch up. Saving for retirement doesn’t have to be painful or challenging. There are many strategies to increase your savings each month without negatively affecting your lifestyle.
Try these easy strategies to increase your retirement savings:
- Avoid impulsive selling of stocks. Avoid concluding that you must sell just because the market is dropping. Do you have reason to believe that your investments are no longer attractive in the long term? Sell for a specific reason.
- A falling market can be the best time to look for buying opportunities.
- Downsize ahead of schedule. If you sell the house and purchase a smaller home, why not do it now? Find a good deal on a smaller home. Cut your expenses now and apply the savings to your retirement.
- Set a savings goal. Goals are effective at improving the likelihood of success. Create a savings goal for the next three months and strive to meet it. A practical plan is challenging yet possible. Give yourself the gift of setting a goal.
- Avoid spending too much for the returns you receive. Focus on inexpensive investments. The fees you pay to invest your money significantly impact your returns, especially over long periods. Index funds are among the least expensive assets and provide excellent returns.
- Get started right away. A small start is better than a later start. Time is the most crucial factor in accumulating a large nest egg. Not only will you contribute to your retirement over a more extended period, but your investments also have more time to grow.
- Take advantage of your employer’s generosity. Contribute enough to your 401(k) to receive complete matching. It’s free money! Ensure that you’re getting all that you can. If you also consider all the money you can earn from investing that free money, it’s a no-brainer.
- Save on autopilot. It’s common to pay your bills, have fun, and then save whatever money remains at the end of the month. This might sound reasonable, but it could be more effective. Spending will increase or decrease to match the availability of funds. You likely have something left over to save.
- Save a percentage of your income before it even hits your checking account. Your human resources department can help you set this up. If you have to do it yourself, transfer money into savings immediately after you’re paid.
- Are you sure you have the best automobile insurance rate? Negotiate your monthly bills. Your credit card company may lower your interest rate if you threaten to move your balance to another card. They often offer to lower your rate if you threaten to cancel your cable service.
- Companies would rather receive less money from you than no money at all.
- Save your raise. Receiving a raise at work is great news. However, consider that you’ve been living without that raise. Apply your raise to your retirement savings. You can’t miss what you’ve never had, and your savings will grow.
If you’re one of the many people that feel behind on their retirement savings, there’s still time to make a difference. A few simple changes can increase your savings rate and the size of your nest egg. Begin applying these strategies as soon as possible. Getting started is often the most challenging part.
by Andrea Carson | Mar 1, 2023 | Retirement
You’re probably well aware that saving for retirement is essential. For most of us, 100% employer-funded pensions are long gone, and Social Security is only designed to offset a portion of your pre-retirement income.
Most financial advisors recommend that workers save enough to cover 75 to 85 percent of their annual pre-retirement income. With stagnant incomes and rising expenses such as healthcare, food, and housing, it’s challenging for most of us to save for retirement!
You can boost your retirement savings, regardless of your age or how strained your existing budget might be.
Use these steps to increase your retirement savings and secure your financial future:
- Save now. If you aren’t already contributing to a 401(k) or other employer-defined retirement plan, start now.
- Start small if traditional contributions of 10% of your income are too much to handle. Try saving just 1 to 2 percent of your gross income. Boost your savings each year by increasing your contribution rate to match the amount of your annual raise.
- You have a 100% instant return on your investment when your employer matches a percentage of your 401(k) contribution. When you enroll in your employer’s plan, contribute at least the minimum to qualify for any match your employer offers.
- Open a traditional or Roth IRA if your employer doesn’t offer a 401(k) plan. Traditional IRAs can help you lower your annual tax bill, free up hundreds of additional dollars to increase your retirement savings. Resist the urge to spend your savings!
- Work longer and retire later. Delaying retirement will boost the amount of your social security benefits and give your savings extra time to grow.
- Early retirees see a permanent reduction of 20% of their estimated benefits. By delaying retirement, you’ll draw a more significant benefit from Social Security and shorten the length of time that you’ll need to draw upon your retirement savings.
- As you approach retirement age, look for ways to create additional income streams separate from your primary occupation, such as freelancing or starting a small business. Increasing your revenue streams frees up more funds that you can use to bolster your retirement savings.
- Get out of debt before you retire. Debt payments often comprise a large portion of most budgets. Debt also eats up funds that you could use for retirement savings.
- Create a realistic, workable budget that eliminates your debt over a specific time frame.
- Aim to be out of debt before you retire so that you need to save less for your retirement.
- As you decrease your debt, the challenge is to remain disciplined rather than going into debt again or wasting your retirement savings on other expenses.
- Downsize before retirement. As you create a budget, take a hard look at how much your home is costing you. Is it time to consider downsizing to a smaller place with lower costs?
- Many of us relocate during retirement for a warmer climate or to be closer to children and grandchildren. Consider selecting a smaller home with lower costs for operation and upkeep if you move.
- You can downsize more than just your home. Sell off unused items and use the proceeds to boost your retirement savings.
Finding ways to save money for your later years can be a difficult and time-consuming chore. However, following these tips makes it easier to increase the money you save for retirement.
