Tips for Saving for Retirement
August 4, 2022
Saving for retirement can be difficult and can easily sneak up on you if you don't have a plan or an idea of what to do. You may miss your goal without aggressive savings, even if you have a retirement strategy.
Retirement Saving Tips
Fortunately, there are several ways to make the system work for you.
Start Savings as Soon as Possible
It's one of the most oft-repeated retirement saving tips for a reason: Start saving early. The sooner you stow away cash, the more you'll have when it's time to retire. Even if you can only put a little in now, that small amount grows over the years. The more you put into a retirement account, the more complex the account works for you.
Open an Individual Retirement Account
IRAs can become one of the most efficient methods to save for retirement, especially if your employer doesn't offer a 401(k). These savings accounts offer unique tax benefits so you can keep as much money as possible. They also earn more than a regular savings account since the brokerage invests the funds in many places:
- Bonds
- Stocks
- Certificates of deposit
Use a Health Savings Account
Healthcare costs will get expensive as you age, but you can find ways to save. For example, HSAs are savings accounts specifically for healthcare expenses. You deposit an amount at the beginning of the year and use the account for eligible costs. The deposited amount is tax-deductible, and you don't have to pay taxes on the funds used.
Talk To a Certified Financial Planner About Your Retirement Strategy
You can talk to a certified financial planner if you're unsure where to start. They can help you pick the best and correct IRA, transfer funds from a 401(k) or other accounts, set up a savings schedule, and take advantage of tax laws.
Delay Taking Social Security
Everyone gets social security after a certain age, but the amount varies by your age of retirement and earned wages. You'll receive a larger monthly payment if you delay taking social security.
Make Catch-Up Contributions
Life throws curveballs, and sometimes you must put retirement savings on the back burner to deal with emergency bills. Fortunately, you have the chance to catch up. Once you reach age 50, you can make larger IRA contributions to bolster your nest egg.
Take Advantage of the Company Match
Many employers may match their employees' 401 (k) contributions by a proposed amount every year. That means you can get double the savings.
Prioritize Savings
You understandably have monthly bills and deserve to treat yourself every once in a while. However, you should make saving your number one priority. Before you pay any bills, "pay yourself" by putting funds toward your retirement account first. If spending is too tempting, try setting up an automatic transfer into a savings account.
About 1891 Financial Life
At 1891 Financial Life we don’t just sell policies, we offer possibilities. 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 annuities to support your financial needs no matter what stage of life you’re in.