Most financial advisers recommend that you start planning for your retirement as soon as possible. However, if you’re nearing retirement age and have not started saving, you may need a last-minute retirement savings plan to reach your financial goals. Here are four tips to boast your retirement savings at any age:
1. Increase payments to your employer’s retirement plan and IRA to maximize your tax-deferred savings. By adding to your tax-deferred accounts you will accumulate more than if you instead concentrated on paying down low interest debt (such as your mortgage payment). If your company’s retirement plan offers contribution matching make sure you invest the maximum matching amount. By taking advantage of your employer’s plan you can increase your savings and get you closer to your retirement goal.
2. Reduce your spending by creating a budget and sticking to it. Your income should go toward your retirement fund and the living necessities of food, clothing and shelter. By putting money into your retirement fund you will prioritize your budget and reduce temptation to spend it on luxuries.
3. Take advantage of discounts with savings opportunities from AARP and local restaurants. If you’re not yet a senior visit popular coupon and bargain websites before grocery or clothing shopping to get the most out of your hard-earned money.
4. Pay off high interest credit cards in order to reduce the bills you will face when you retire. By conquering your high interest credit card debt you will free up monthly income and be able to make larger contributions to your retirement fund.
If you’re interested in talking with someone about your retirement plan Horizon Bank has an excellent team of financial advisers who are here to help. Horizon Bank can assist you with your individual retirement plan whether you have 20, 10, or 2 years until retirement. You can also visit our investment and trust page to access a free quiz to review your current retirement plan.