6 Strategies to Boost Your Retirement Savings

Sometimes the unexpected events of life can throw our plans out of balance. Maybe you had once hoped to reach a certain retirement savings goal at a certain age, and now you realize that you’re falling short of that goal?

Don’t give up on your retirement dreams. These six strategies can help boost your retirement savings and get your plans back on track.

Examine your budget. Examine your budget closely, and identify unnecessary expenses that you can reduce or drop. Any money that you save can now be devoted to retirement savings. Every little bit counts!

Bring in more income. It goes without saying that earning more money means you can spend more money. But it also means you can save more! Review your options, such as asking for a raise, changing companies, or starting a side gig. If you can bring in some extra income each month, devote it straight to retirement savings.

Avoid big splurges. Bonuses, tax refunds, inheritances, and other windfalls can tempt you into splurging on big-ticket items or vacations. But if you devote that cash to retirement savings instead, you’ll be thanking yourself later.

Make catch-up contributions to your 401k. You know that each year, you can contribute pre-tax dollars to a 401k, up to a certain limit. But did you also know that after age 50, you can make additional catch-up contributions beyond the maximum allowable contribution?

This year, the maximum contribution was $19,500… But those aged 50 or older could make additional contributions of $6,500 for the year. And since you’re likely to hit your earnings peak after age 50, this is the perfect time to stash more money in your retirement account.

Make catch-up contributions to your IRA. Both Traditional and Roth IRAs also allow for catch-up contributions of $1,000 per year after age 50. From age 50 until you retire, that could mean another $12,000 to $15,000 or more in your retirement account, plus accumulated interest!

Open and fund a health savings account. You might already know that those enrolled in low-premium, high-deductible healthcare plans can use health savings accounts to help with out-of-pocket costs. But did you also know that unused funds in the account are rolled over from one year to the next? A health savings account can actually be used to set aside money to be used for healthcare expenses in retirement!

These strategies, and more, can help you get your retirement plans back on track. Give us a call to discuss your situation in more detail, and we can help you identify opportunities that can work for you.