Mar 24, 2023 / Money Tips

10 Quick Tips to Save for Retirement

Whether retirement seems like a long way off or right around the corner, finding new ways to save for retirement is easier than you might think. Try these 10 quick tips to help you gear up for your golden years and plan out the perfect retirement for you.

1. Make a Plan for Your Money

Ask yourself when you want to retire, how much money you’ll need, and how much you’ll have to save every month. Having a plan for your money can help you know where to invest and make saving more manageable.

2. Contribute to a 401(k) Account

If your employer offers a 401(k) retirement plan, you can contribute pre-tax dollars to your retirement savings, lowering your pre-tax income and earning compounding interest on your investment.

3. Maximize Your 401(k) Contribution

If your employer matches your 401(k) contributions, you should try to contribute the maximum amount that your employer will match to get the most bang for your retirement buck.

4. Set up a Traditional IRA

You can save up to $6,000 per year with a traditional individual retirement account. Your contributions are tax deferred and they’ll earn compounding interest until you withdraw your funds.

5. Set up a Roth IRA

Like a traditional IRA, you can save up to $6,000 a year with a Roth IRA. Unlike a traditional IRA, you’re taxed on your contributions up front, and won’t be taxed when you withdraw in retirement.

6. Add More to Your IRA Accounts

If you’re over 50, you can play catchup on your retirement plan by contributing even more to your IRA accounts—an additional $1,000 a year for individuals and $2,000 a year for couples in each account. Some teachers, healthcare workers, public and non-profit employees can contribute more too.

7. Use Direct Deposit

Automate your retirement savings by setting up direct deposit to contribute to your accounts with every paycheck.

8. Increase Your Retirement Contributions

When you receive extra money—whether through a raise, a gift, or tax refund—stash your extra cash in a retirement account to help your savings grow even faster.

9. Avoid Early Account Withdrawals

It can be tempting to access your retirement money to help pay for major expenses. When you make early withdrawals, you’ll likely have to pay penalties and fees, and you’ll slow your money’s earning power.

10. Start Saving Now

The earlier you can start to save for retirement, the more momentum you give your money to grow. Today is a great day to start saving for retirement.

Saving for retirement is a lot easier when you have a plan and you consistently add to your retirement accounts. Make it a part of your monthly budget, be persistent, and you can achieve your retirement goals.