Strategies for Saving for Retirement
January 4, 2022
JANUARY 4, 2022: Whether you have your current retirement savings automated to be pulled out of your paycheck monthly and you’re all-in on putting away as much as possible or whether you’re currently a casual saver and only stash away retirement cash when you have leftover funds at the end of the month, there are several methods to save for retirement that can help you ensure you get there on time. Knowing the right Retirement Strategy. steps to get you to retirement can prevent unforeseen financial difficulties later in your life, give you financial peace of mind, and even help you hit your savings goals earlier. Saving for your retirement happens one step at a time, so consider starting on one or more of these savings strategies today.
Set Personal Savings Benchmarks Based on Your Current Age
One way to keep yourself and your bank account on track as you age is to set personal savings benchmarks. For example, you could aim to have saved:
- Your yearly salary by the time you turn 30
- Three times your yearly salary by age 45
- Eight times your yearly salary by age 60
- At least ten times your yearly salary by the time you retire
Expand Your Retirement Investments Into High-Yield and Low-Risk Funds
If you currently leave your earmarked retirement funds in a low-yield or no-yield account at the local bank, it might be time to expand into different investments. Look for retirement plans that offer a high yield and relatively low risk, such as:
- Simple IRA plans
- Roth IRA plans
- 401(k) plans
- Government pension plans
- Certificates of deposit
- The stock market
- Money market funds
Increase Your Income or Reduce Your Current Expenses To Help Save More
Both reducing costs and earning more money can help you turbo-charge your retirement funds. To save more, you could:
- Pick up a side gig, monetize a current hobby, increase your passive income streams, or take on some freelance work to get additional income in the door
- Reduce major expenses where possible, such as moving to a location with lower rent, switching to a cheaper car, or cutting back on long-haul travel
- Cut small expenses out of your everyday life, such as eating out or subscribing to numerous media platforms
- Ask for a raise at the office or work towards securing a coveted promotion
Whatever type of saver you are and however much retirement money you may currently hold in the bank, taking the right Retirement Strategy. steps to get you to retirement can make all the difference by the time you hit your anticipated retirement age. Setting personal benchmarks, expanding into high-yield and low-risk savings funds, and cutting expenses or boosting your income to help you penny-pinch and save more can all be effective steps. Work one or more of these strategies into your retirement plan, bit by bit.
About 1891 Financial Life
At 1891 Financial Life, we pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.
Our portfolio is extensive, ranging from various life insurance policies to our MYGA to support your financial needs no matter what stage of life you’re in. For more information, contact us at (855) 804-7424.