Between today’s expenses and the uncertainty of the future, it can be tough to know where to start or how to boost your savings. But the good news is that it’s never too late to get on track.
Here are four simple ways to help you feel more confident and save smarter for your retirement.
1. Start with a Plan
The first step—make a plan. It doesn’t matter how old you are or how much you’ve saved so far. A solid financial plan looks at everything—your income, debts, investments, taxes, insurance, and even goals like saving for a child’s education.
If money feels tight, try tweaking your tax withholding so you get a bit more in each paycheck instead of waiting for a big refund. That extra cash can go straight into your savings. Even bumping up your retirement contributions by just 1% of your income can make a big difference down the road.
2. Use Tax-Advantaged Accounts to Your Advantage
If you’re already putting money into accounts like IRAs or 401(k)s, then great. But many people aren’t taking full advantage of them. For example, if your employer offers a 401(k) match, definitely try to contribute enough to get the full match—it’s basically free money.
Health Savings Accounts (HSAs) are another gem that often gets overlooked. If you have a high-deductible health plan, HSAs let you save money tax-free for medical expenses now or in retirement. Plus, you can invest that money to help it grow over time, which is a smart way to keep up with inflation.
3. Take Advantage of Catch-Up Contributions
If you’re 50 or older, you get a special opportunity to save even more. You can add extra “catch-up” contributions to your IRAs and workplace plans like 401(k)s. For example, in 2025, you can put an additional $1,000 into your IRA and up to $7,500 more into your 401(k).
And if you’re between 60 and 63, some plans even let you contribute more with “super catch-up” contributions.
If you have a Health Savings Accounts (HSA), you can add an extra $1,000 starting at age 55. These extra contributions can give your retirement savings a serious boost when you’re closing in on retirement.
4. Invest for Growth
Your investment choices matter. To keep up with inflation and grow your savings, you’ll want to find a balance between risk and growth that feels comfortable to you. Stocks can offer growth potential over the long term, but you want to make sure you’re not taking on more risk than you can handle.
If you’re unsure how to build the right investment mix, talk with a financial advisor or using online tools to see if you’re on track. The goal is to help your money grow enough to support the lifestyle you want when you retire.
A Quick Look at Retirement Planning by Age
- In your 20s: Focus on saving as much as you can in tax-advantaged accounts and invest for growth.
- In your 30s and 40s: Keep saving and investing for the long term while maximizing tax benefits.
- In your 50s and 60s: Use catch-up contributions and start thinking about how you’ll turn your savings into income.
Retirement planning is a journey, not a sprint. The key is to focus on what’s within your control and take it one step at a time.
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