How to Save for RetirementJune 26, 2020
“You have to put off being young until you can retire.” —Author Unknown
How many of us have looked longingly toward retirement so we can do all the things we’ve dreamed of for years? Retirement — your golden years — should be all about enjoying the fruits of your life-long labor; however, you’ll need a way to support these years. Unfortunately, the average person in the Baby Boomer generation doesn’t have enough in savings. If you feel like this applies to you, there are some ways to save money for retirement so you can live the life you want.
6 Ways to Save Money for Retirement
- Know that today is the day to start saving.
While it’s ideal to have already been saving as much as possible, today is the next best time to start. Just adding a small amount extra into your savings can become much larger as the interest compounds over time. Setting a goal is an important part of this step. Consider your current expenses and any possible future expenses — this will give you a good idea of how much you’ll need to support yourself during retirement. (Experts generally suggest 70-90% of your yearly income.)
- Invest in your 401(k).
Many companies now offer 401(k)s as an employee benefit, so chances are that your company offers it as well. If you’re not already investing in this, speak to your HR department as soon as possible. Also, find out if your company offers an employer match. If they do, make sure you’re investing enough of your paycheck to take advantage of the full match.
- Invest in an individual retirement account (IRA).
Many people invest just enough in their 401(k) to get the full employer match. An IRA can help to make up any additional investments. There are two options — traditional or Roth — so you may want to speak to a financial advisor to see which one is right for you.
- Automate your savings.
Rather than taking time out of your schedule to manually move your money into your savings accounts, automate your savings. Automation means the money will come directly out of your paycheck and into your savings account. You won’t have to worry about forgetting to move money around or making a budgeting error.
- Delay social security.
It may not seem like much, but for each year you put off receiving social security, your monthly benefits increase. Waiting to retire even one year can make a difference in the long run.
- Pick up a second job.
It may not seem ideal, but a part-time job can be a significant boost in saving for retirement. The key is not thinking of it as spending money but rather investing all of it into your IRA or savings accounts.
Saving for Retirement with The Oaks at Denville
The Oaks at Denville wants to help you make your golden years your best years. One way we do that is by offering personal consultations with our sales counselors. During your consultation, we’ll help you find a plan that matches your budget and goals as well as discuss any concerns you have.
Learn more about how to finance your retirement by downloading our FREE guide, Protect Your Financial Future: Financing Your Retirement at Springpoint. Or you can contact us today to speak with one of our sales counselors and schedule your consultation for a vibrant, affordable senior living experience.