When you plan for your retirement it is always best to start as early as possible, get professional advice, and listen to the experts. That being said, there are some simple steps you can take to increase your retirement savings. Consider the following tips to help you boost your retirement savings today.
1) Set a realistic goal. Sit down with a retirement professional so that you will know how much you will need to retire comfortably. This makes the process of saving and investing easier and more rewarding.
2) Set benchmarks along the way as you save. Many companies offer free retirement calculators to help you determine the age that you may be able to retire and how much you may need to save to do so. This will help you gain satisfaction as you pursue your retirement goals.
3) Start now saving now. Starting your savings as soon as possible is essential when you are considering your retirement pan. That is why experts recommend saving and investing as much as you can now. This will also allow for compounded interest on your money.
4) Contribute the maximum to your 401(k) plan. If your employer offers a traditional 401(k) plan, find out what the maximum is that you can invest and contribute that.
5) Limit spending as much as possible. Set up a budget on paper and eliminate any items that are not essential.
6) Meet your employer’s contribution to your retirement plan. If your employer offers to match your 401(k) plan, contribute enough to take full advantage of the match. This is free money, so don’t leave it on the table!
7) Open an IRA. Consider opening an (IRA) to help build your nest egg. Money contributed to a Traditional IRA is usually tax-deductible. They are also primed to grow tax-deferred until you begin making withdrawals during retirement. Aim to increase your retirement contributions up to the maximum allowed in your 401(k), IRA or other retirement plans whenever you can. Talk to your bank or a financial expert for more information about opening an IRA and all the critical details.
8) Take advantage of catch-up contributions if you are age 50 or older. You may have had some trouble saving for retirement in your younger years. But all hope is not lost. Once savers reach the age 50, they are eligible to save more than the normal limits. This is usually referred to as “catch-up contributions” for IRAs and 401(k)s. So if you haven’t been able to save as much as you would have liked in the years leading up to 50, catch-up on your contributions and boost your retirement savings as much as possible after age 50.
9) Automate your savings. This one may seem like a challenge, but it can ultimately be a huge factor in your savings plan. Many plans allow participants to automate their regular contributions directly from their financial institution. Speak to your bank or employer to find out how this can be done and how much you can contribute.
10) Squirrel away extra funds. You may have extra money that comes from a bonus or some other source. The first temptation is usually to spend it. Experts suggest that you put at least half away in your retirement savings account. Instead, treat yourself to something small and use the rest to help you get closer to your retirement goals.
11) Delaying Social Security benefits as long as possible. Experts suggest that this tip is essential when considering your retirement plan. The reason for this is that for every year you delay receiving a Social Security payment before age 70, the amount you receive in the future will increase. This also means that pushing your retirement back for a year or more could significantly boost your Social Security income when you retire.
12) See a professional for more details. You may know that you need to put money away for retirement, but finding out exactly how much you need is also very important. Finding creative ways to increase your contributions is also a smart move. It may seem like a pain, but the little amount of extra effort now will help make your retirement comfortable and enjoyable.
The legal team at the Law Offices of J. Price McNamara is waiting to help you with your ERISA issues, so do not hesitate to contact us. Attorney J. Price McNamara has been practicing ERISA law for many years and has handled many cases just like yours. We are ready to schedule your free case review, so call us now to get started.
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