3 easy ways to save more for retirement than you save today


Here’s some bad news for you: retirement will likely cost more money than you think.

A lot of people expect their living expenses to drop dramatically once they stop working, but when you stop and think about it, chances are most of your expenses will stay the same. Some might even increase (think health care).

That’s why you need to approach retirement with a good level of savings. If you leave unprepared, you could really struggle to cover your expenses after your career is over.

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And if you’re thinking of going down on Social Security, well, don’t. These benefits will only replace about 40% of your pre-retirement income if you’re an average wage earner, and most seniors need about double that amount to live comfortably.

If you are already used to saving money for retirement, congratulations, you are securing your future. But if you can also recognize that you’re not saving as much as you could be, well, now is the time to do better. Here are some easy ways to put more money into your retirement plan and significantly increase your savings rate.

1. Make sure you hook your employer full 401 (k) match

Many employers who sponsor 401 (k) plans also match the contributions made by employees, at least to some extent. If you’re not currently getting all of that match, force yourself to increase your premium rate so that you can claim every dollar you’re entitled to.

Employer Matching Dollars are actually free money for your retirement years. If your business will match contributions up to $ 5,000 and you currently only contribute $ 3,000 per year, pushing yourself to save $ 2,000 more will actually translate into an additional $ 4,000 per year in your plan. saving. It’s pretty sweet.

2. Get used to following a budget

It’s easy to lose track of where your money is going when bills keep rising and other expenses, like recreation, eat into your income. But if you are trying to stay on a budget, you may be able to save more.

Budgeting is easy. You simply list your monthly expenses, factor in one-time expenses, and then make sure there is enough money left to better fund your savings. Once you define these different expense categories, you’ll be in a better position to change them as needed to meet your savings goals.

3. Automate your IRA contributions

When you sign up for a 401 (k), your payroll department deducts your dues from your earnings upfront so you won’t be tempted to spend that money. IRAs generally work differently in that you open an account and manually put as much money into it as you can.

But some IRAs offer an automatic savings feature that works just like a 401 (k). And taking advantage of this option could help keep you on track with your contributions.

Take your savings to the next level

Some people aim to retire with millions of dollars under their belt. Others just want enough money to pay the bills and enjoy modest trips. No matter where you fall on this spectrum, the more money you can put in the bank for your retirement years, the better, so follow these tips to easily increase your savings.


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