How to Save for Retirement so You Can Enjoy ItJune 12, 2020
There’s little that we look forward to as much as retirement. It’s commonly referred to as our “golden years” for a good reason — it’s the time of our lives where we get to bask and enjoy the efforts of our younger years. Of course, in order to fully take advantage of our post-career time, we need to ensure we have enough in savings.
Surprisingly, nearly one-third of the Baby Boomer generation don’t feel confident that they have enough in savings. So how do you improve your confidence in saving for retirement when you’re looking to turn in your office keys in the next few years? We’ve listed a few tips below about how to save for retirement.
Tips on How to Increase Retirement Savings
If you haven’t been contributing to savings (or have only been saving the bare minimum), start today. Even adding a small amount to your investments can have a big payout later thanks to compound interest. You’ll also want to have a goal or adjust your old one. Many Americans put money into savings without knowing exactly how much they’ll need to retire on. If you’re not sure how much you’ll need to live the life you want, consider you current and future expenses, and speak to a financial advisor. They’ll be able to set you on the correct path.
One of the fastest ways to start saving for retirement is to find out if your company offers a 401(k) and an employer match. Many companies offer both options now, and they’re of great benefit to your savings. An employer match means they’re investing their money in your retirement fund to match what you’re contributing. To maximize this “free money,” you’ll need to invest at least the given percentage for the full benefit. For example, if they’re offering to match 100% at 2% and 50% up to 5%, make sure you’re contributing 5% of your paycheck.
If you feel like your 401(k) contributions still aren’t enough, consider opening an IRA (independent retirement account). There are two options — Traditional and Roth — so you may want to speak with a financial advisor if you aren’t sure which option is best for your financial situation. It may also feel like a daunting task to constantly have to move money from your bank account into your retirement fund. If that’s the case, automate your savings.
Finally, if you’re nearing retirement age but don’t feel comfortable with what you have in savings, consider extending your career. Imagine if you could max out your 401(k) for seven or eight years instead of five. Those extra two or three years can make a significant difference. Delaying retirement also means delaying Social Security which can also have a substantial impact. For each year you delay your Social Security benefits, they grow by 8% for life. And for additional savings, you can look into part-time work for extra income, all of which can go directly into savings.
Discover How Affordable Senior Living can be at Monroe Village in Monroe Township
After working so diligently for years, you deserve the best possible retirement. One way we help make your golden years your finest years is through the provision of experienced sales counselors. With a personal consultation, they can walk you through your goals, your budget, and anything else you want to discuss to help you find a plan that’s right for you.
To learn more about retirement finances, you can download and read our FREE guide, Protect Your Financial Future: Financing Your Retirement at Springpoint. You can also contact us at any time to speak with one of our sales counselors to see how easily you can afford vibrant senior living.