How to Boost Your Retirement Savings

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No matter what age we are right now, it’s never too early to start preparing for retirement. Many of us are too focused on what’s happening now to even think about our retirement. While it’s completely normal to worry about today instead of a time that’s thirty or forty years away, retirement planning is a crucial financial responsibility that all of us need to do.

If you want to be a financially independent retiree in the future, here’s what you can do today to make that possible:

1. Start planning

Find a reputable retirement planning services provider in Taylorsville and other areas who can help you plan your money around investments, insurance policies, and savings. If you struggle with handling finances, getting a retirement planner is better than doing guesswork with your money.

2. Increase your 401(k) contributions

Whenever possible, increase your 401(k) contributions so that you can save more money for your future. It may be difficult for some to live on a smaller budget, but you’ll thank yourself later when you can live comfortably in retirement.

3. Build an emergency fund

An emergency fund is necessary for people of all ages, most especially those that are about to go into retirement. If you don’t have an emergency fund yet or have spent it already, start building a new one as soon as you can. This emergency fund will serve as your fallback in case you have a medical emergency, or if your pension doesn’t kick in on time.

Coins and bills on the desk

4. Make saving a habit

Retirement is the chapter in our life where we get to enjoy the results of decades worth of work. That said, it’s not a good time to still be worrying about money. Aside from your 401(k) plan and other investments, build a savings account that you can use to enjoy your retirement with financial freedom.

5. Take advantage of employer’s match

Contribute the maximum amount needed to take full advantage of the employer’s match to your 401(k). For example, if your employer offers to contribute 50% of your contribution up to 5% of your annual salary, you can earn $1,250 if you contribute $2,500 from a $50,000 salary.

6. Catch up on your contributions

If you’re over the age of 50 and want to boost your IRS contributions, you can pay additional dues beyond the maximum. Check the IRS website to find out how much you can contribute this year and try to reach that number for your next payment.

7. Reduce your debt

You don’t want to be still paying a huge amount of debt when you’re retired. When the retirement age is creeping up on you, start downsizing your debt as much as possible. For example, make bigger payments to your mortgage to complete it before you retire, close down some credit cards, and avoid incurring new debt before retirement.

You can also try selling your assets to help pay off some of your loans. Most importantly, avoid taking out new loans when you’re nearing retirement age unless there is a dire need for it.

Preparing for retirement should start as early as possible. And with these tips, you can increase your retirement savings and be more financially prepared for that chapter in your life.

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