Stefan R. Huber | Research Analyst
February 12th, 2020
Figuring out how much to save for retirement can be tricky. There are many factors that go into a number, all of which can change over time. The one thing that’s certain though: more retirement savings is always better. Many planners have a set amount that goes away each month, but there are other ways to further boost that nest egg and bring it to the next level. Here are 5 simple ways to add more to your retirement savings:
Sign Up for a Plan
Many employers now offer 401(k) and other retirement plans to their employees. These have slowly replaced pensions as a safer and more stable option for retirement planners. Inquire with your employer to see if they have a plan that’s right for you.
Open an IRA
Opening up an IRA is much simpler than you may think. In many cases, it can be done at home from your computer, or even on your smartphone. Katie Taylor from Fidelity Investments summarizes the benefits of such as plan. “It’s another way to save and let your savings grow tax-deferred,” Taylor says. An IRA account is a time-tested method to making sure you are covered in retirement and generate sufficient capital on your way there.
Up Your Savings Rate
The simplest trick in the book, but potentially also the hardest: save more. Putting 10% away can seem like a lot, but it’s important to invest as much into your future self as possible. Taylor advocates considering a higher level of savings, or “as close to 15% of your pay as you can.” Saving more can get you closer to the retirement you’ve always dreamed of.
Get Your Contributions Matched
If you are contributing to a retirement fund under your employer’s plan, you may be eligible for matched contributions. These should be treated like what they effectively are: pay raises. Taylor advises to make the most of these schemes. “Save at least enough to qualify for the maximum company match. Don’t leave free money on the table.” Make the most of any matching contributions that your employer offers you. But first, you’ll have to make that initial match.
Seek a Financial Advisor
When in doubt, talk with a professional advisor. Someone who can see your situation from an objective standpoint can provide insights you may otherwise miss. Advisors can also provide you with securities and portfolios that are suited to your current and future needs. Not sure how to pick the right one? This article can help you to figure out which financial advisor is right for you (if at all).
Do you want to boost your retirement savings? Which strategy sounds best to you? Answer this poll below:
Option 1: Employer Plan
Option 2: IRA
Option 3: Upped Savings
Option 4: Employer Matching
Option 5: IDK, I need an advisor
Don’t forget to check out other helpful articles on our website.