3 Ways to Help Boost Your Retirement Account
Are you playing catch up on saving for retirement? Do you wish you would have started saving sooner? While investing early in your retirement accounts is good advice, there are still ways to grow your retirement savings as you get closer to retirement age.
Since you can’t go back in time and start saving sooner, here are three things you can do to help boost your retirement account balance:
Get a status update
Have you checked on your current retirement account recently? Check to see how your investments are being distributed. As you near retirement age, you may want to shift your investments, or portfolio, from aggressive to safe. If you have a financial advisor, check to be sure you’re on track to meet your goals.
This one may seem like a no-brainer, but it is worth stating – if your current savings rate isn’t going to get you to what you need to retire by retirement age, start saving more.1 This could be as simple as increasing your contribution to your retirement accounts by 1 percent. Does your employer offer a match for your 401k? Make sure you are getting the maximum contribution. Are you playing catch-up and over age 50? The tax law allows you to contribute a little extra to most retirement plans.
If you feel you are saving all that you can, try to think outside of the box.
- Do you have any credit cards with high interest rates? Look into switching to a new card with lower rates and make paying off those debts a priority.
- Make sure you don’t have any old auto-pay withdrawals active. Sometimes it’s easy to overlook small, regular account debits.
- Join your grocery or pharmacy rewards programs. You can access extra coupons and discounts on items your regularly buy.
Trim your day-to-day spending
Trimming everyday spending impacts your retirement account in two helpful ways. You can save the money you have trimmed now and you can reduce the monthly amount you will need from your retirement accounts later.
There are several ways to go about cutting your costs. You can cut one larger expense for the year or trim a few smaller expenses. This could mean cancelling a rarely used gym membership, switching to a less expensive cable TV package, or only eating out for lunch once a week.
Make sure you’re on the right track
The key to retirement is proper planning. If you are not sure if your current retirement savings are enough, check a helpful savings calculator. If you are in earlier stages of planning for retirement, use a calculator to see how much retirement income your current savings will provide. By knowing how you’re saving money, focusing on saving more, and being careful with your spending, you can help make sure your retirement accounts are in great shape when you’re ready to use them.
1IRS (2017, August 12). Web page: Retirement Savings Tips for Individuals. Retrieved November 14, 2017, from https://www.irs.gov/retirement-plans/retirement-saving-tips-for-individuals.
Mutual of Omaha Investor Services, Inc. and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation.