Getting Ahead on your Retirement Savings

Saving for retirement is something that we all need to do, but many of us may feel that we’re unprepared on behind on our retirement savings! However, if you feel that you’re behind just know that you’re not alone—nearly two-thirds of Americans feel that they are behind on their retirement savings! That said, there are a number of ways you can ease your worries and get ahead of the curve by getting on top of your retirement savings now! Perhaps the most important thing you can do is contribute to your 401(k). Second, take advantage of retirement benefits that your employer offers and how can you maximize the offer! Lastly, focus your savings by setting a goal for yourself in terms of how much you want to have saved by a certain date!

Don’t Neglect your 401(k)

Your 401(k) can differ slightly depending upon what your employer offers you, so first you’ll want to familiarize yourself with what your employer offers and then formulate your plan from there! If your employer offers a traditional 401(k) plan—the most common option—then you’ll be able to contribute pre-tax money to your 401(k) which certainly has its own advantages! Simply put, if you’re contributing money to your 401(k) pre-tax, you can easily account for how much money you’ll be taking home with each paycheck and how much will be going into your 401(k)! If your employer offers a Roth 401(k), which allows you to contribute money to your 401(k) after taxes, then you’ll want to be sure you understand what income tax bracket you’re in and how it will affect your savings!

Don’t Pass up any Benefits

While the 401(k) itself is a benefit that your employer can offer you, there are a number of other ways you can maximize the benefits available to you! 401(k) matching is not as common as it used to be, but some employers still offer this benefit! As such, the amount of money an employer offers to match differs from company to company, so you’ll want to familiarize yourself with your employer’s rate! However, whatever your employer is willing to match is essentially free money added onto your 401(k), so why wouldn’t you take advantage of that? In addition, if your employer doesn’t offer a 401(k) matching program then be sure to inquire about what benefits they do offer in its place!

Set a Goal

Often times we avoid goal setting when it comes to retirement and other financial situations because it can be daunting to put in writing just how much money we need versus how much we have! However, being upfront with yourself and addressing just how much you need is the first step in reducing that number and getting on top of your retirement savings! In addition, you can create benchmarks along the way the lets you keep track of the progress you’re making as well as motivate you to continue making progress!

Contact Carolina Money Minders for more retirement tips!