Ways to Boost Your Retirement Savings
January 12, 2023
You want to boost your retirement savings but are unsure of the methods for accomplishing this goal. Saving for retirement is vital to planning your future. If you’re like most people, you might not be on track to meet your retirement savings goals. In fact, according to statistics, 60% of people in the U.S. intend to rely on Social Security as their sole source of retirement savings — but for many, Social Security won’t be sufficient. It’s essential to focus on increasing your retirement savings and ensure that you have prepared for the future. The following four tips will help you do so.
Start Saving for Retirement Early
The most efficient to save for retirement is to start early. People who begin saving in their 20s will be much safer than those who began saving in their 30s or 40s. Of course, this isn’t possible for everybody. You should not feel discouraged if you feel like you’re getting a late start. It’s better to start saving late than to overlook saving altogether.
Make Contributions to Your 401(k)
A 401(k) is among the most effective tools for retirement planning. Likewise, it allows you to take advantage of tax deferment. It also reduces your overall tax burden and makes it easier to save more. Additionally, many employers offer 401(k) matching or subsidies so that your company can further foster your contributions. You can also take advantage of high contribution limits that let you save large sums quickly. According to the IRS, the annual limit will be $22,500 in 2023.
Open an IRA Account
If a 401(k) doesn’t sound appealing or your financial needs differ, you can open an IRA account instead. IRAs — which stand for individual retirement accounts — are beneficial because they allow you to build your savings gradually. Choose between a traditional IRA and a Roth IRA. The former is advantageous because contributions and investment earnings may be tax-deductible. The latter is advantageous because withdrawals after age 59½ are typically not subject to federal or state income taxes.
Automate Your Retirement Savings
Perhaps the best way to save for retirement is to simply put your savings on autopilot. You can schedule automatic transfers with your bank every time you get paid. The transfer should take a certain portion of your check — either a fixed dollar amount or a percentage — and transfer it to your retirement savings account. This method may eliminate much of the stress surrounding retirement saving because it takes care of the task automatically. More importantly, it allows you to work your retirement savings into your budget, so you always know how much you will have to spend after saving.
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 MYGA to support your financial needs no matter what stage of life you’re in. For more information, contact us at (855) 804-7424.
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