More Ways to Save Money for Retirement

Senior man using a calculator

More Ways to Save Money for Retirement

May 10th, 2021

"To me, retirement means doing what you have fun doing." Dick Van Dyke

Retirement is appealing to many people because it’s a time to finally do what you want with your day, every day. Your golden years should be about taking a step back and reaping the rewards of your working years. However, you still need a way to support yourself during retirement, and many of those in the baby boomer generation don’t feel as though they have enough in savings. If you don’t feel financially prepared to finish your career years, there are a few different ways to save money for retirement so you can live the life you deserve.

How to Save for Retirement in 6 Easy Steps

Need to increase your retirement savings? Below are some steps you can take to start saving a little bit extra for your golden years.

Improve Your 401(k)

Most companies offer 401(k) opportunities now as part of their employee benefits. Chances are your company offers this as well. If you aren’t already taking advantage of this opportunity, you should reach out to your HR department right away. If you do already contribute, make sure you’re investing enough to receive the full employer match.

Start Investing for Retirement in an IRA

If you’re already investing in your 401(k), you may be only contributing enough to get the employer match. However, that may not be enough to retire on. Adding an individual retirement account (IRA) to your portfolio can help balance out additional financial needs. You’ll need to choose between a Roth and a traditional IRA, so you should speak to a financial advisor to see which option is the best for you.

Automate Savings

Manually moving your finances into each savings or retirement account can take a lot of time out of your schedule. It also means that you have to plan it around your monthly budget. To save time and skip any budgeting errors, automate your savings. This means the money for your savings account will come directly out of your paycheck without you needing to take any extra steps.

Delay Your Social Security Payments

Another way to increase your retirement savings is to suspend social security. It may not seem like much, but your monthly benefits will increase for each year you put it off. Retiring even one year later than you planned can make a significant difference.

Start a Second Job

While it may not be your first choice, a part-time job can significantly boost your savings for retirement. The key is to put everything you make into your retirement account rather than use it as additional spending money.

Start Saving for Your Retirement Today

Having as much as you can in your retirement savings already is ideal, but that’s not always the case for everyone. If yesterday is the best day to start saving, today is the next best day. Even adding a small amount of savings right now can make a big difference later as the interest continues to compound.

One important part of this step is to set a savings goal. You’ll want to consider your current expenses and potential future expenses like medical needs to give you a better idea of how much you’ll need to support yourself in your retirement years. According to the experts, you should be saving at least 15% of your pretax income each year.

Talk to the Experts at Garden Plaza About Retirement Living

Retirement is a big chapter in each person’s life, and moving to a senior living community could be your next big adventure. At Garden Plaza of Florissant, our independent living community offers sprawling grounds, luxurious features and urban accessibility so you can live a stimulating life full of engaging opportunities.

Of course, living your best life isn’t the hard part —it’s deciding if the financing is right. Discover how affordable vibrant living can be by contacting us today.

(This article serves for educational purposes only. If you have any questions about saving for retirement, please contact your financial advisor.)