
If you’re worried about the amount of money you’ve set aside for retirement*, perhaps you don't need to. It’s never too late to begin your personal retirement planning. And there are actually several ways you can potentially increase your savings without making drastic changes to your budget. Regardless of your age or net worth, follow these three tips to regularly and consistently start saving before it’s time to retire.
- Maximize Your Benefits with Your Company Match
If you work for a company that offers matching for contributions to a 401K plan, make sure you are getting the full benefit of your match. Many people put certain percentages of their income in their retirement savings but not enough to get their full company match. Remember, a company match is free money. It’s likely worthwhile to cut back in other areas of your life (maybe eating out or other small luxuries) in order to ensure you get as much of that free money as possible. If you aren’t sure of your company policies, ask your manager or human resources department and find out as much as you can until you fully understand how your matching policy and vesting schedule work. After all, no one cares more about your money than you.
- Set It and Forget It with Automatic Deposits
- Don’t Be Tempted By Windfalls — Keep Investing
Contact the LPL Financial team at UFCU to learn more about planning for your retirement.
Perhaps the best way to save for retirement is to do it without thinking about it. If you wait until the end of the month to save whatever you have left over after bills and expenses, you may never have enough. The best strategy is to pay yourself first, and you can do this by setting up automatic deposits to your retirement account whenever you get your paycheck.
Whether you do this through your employer or your own separate brokerage account, automatic payments can help build your retirement savings even if it’s just $100 per month.
Do your homework before you decide how much to invest each month. You can do your own research, take advantage of a retirement calculator, or speak with a financial advisor to find out how much you should save to reach your goal.
Many people look forward to receiving their tax refund every year, but most people don’t look forward to the windfall so they can invest it. Instead, they use it for family trips, big screen TVs, or other indulgences. While you can use your refunds, financial gifts, inheritance, or other unexpected bonuses and checks for whatever you want, consider using it to increase your retirement savings especially if you’re worried you don’t have enough saved for your future.
If you don’t want to move all your unexpected windfalls to your retirement savings, you can also divide them, using some for spending, some for saving, and some for giving. Either way, your future self will thank you for taking the time to save toward your retirement whenever you had the chance.
Ultimately, there are many ways to optimize and increase your retirement savings throughout your life, and as long as you make it a priority to consistently invest over the course of your working life and beyond, you should be well on your way to building a savings that you can enjoy throughout your retirement years.
* Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. UFCU and UFCU Investment Services are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using UFCU Investment Services, and may also be employees of UFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, UFCU or UFCU Investment Services. Securities and insurance offered through LPL or its affiliates are:
Not Insured by NCUA or Any Other Government Agency
Not Credit Union Guaranteed
Not Credit Union Deposits or Obligations
May Lose Value