How to Boost Your Retirement Savings

Looking to boost your retirement savings? Look no further! Here are some tips on how to do just that!

Step Up the 401(k)

If your company is matching your 401(k), make sure you take advantage of this now! Once you have established this for a year, consider ramping up your percentage by 1. Every other year or so, increase the percentage. Because you are increasing it at a slow rate, it’s unlikely that you will really notice it month to month, but you’ll love seeing your account grow. 

Don’t Cash Out

When switching to a new job, many people cash out their retirement policies. However, this can be damaging to your retirement portfolio and leave you with much less money. Consider rolling over these funds into an IRA or if possible, directly rolled over into your next employer’s plan. 

Play Catch Up

If you are age 50 or more, you can participate in what is called “catch up contributions.” As of 2018, the government allowed an additional $6,000 contribution to 401(k) and 403(b) plans. IRAs were allotted an additional $1,000. Even though you are over the age of 50, these contributions still earn interest and can make a significant difference.

Don’t Spend Bonuses

It’s tempting to go and celebrate a big bonus or raise with a big purchase. However, the smart thing to do is to pretend that it never happened, and pour it into your retirement account. Whatever you want to use that money for now, you’ll be able to do even more with it later. The practice of delayed gratification is tough but worth it. 

Cut Something Out

Think of a luxury item that you use every day. Maybe it’s something small that you don’t think twice about. Consider cutting it out and using the money you’ve been putting towards it for something better, like your golden years.  

You can reach your retirement goals by staying focused throughout your earning lifetime. For more advice on your savings plans, you can count on us at Axiom Bank.