5 Ways To Catch Up On Your Retirement Savings

There are many reasons why we might fall behind on our retirement savings. From unexpected outgoings to investing in a home, or simply falling on bad times and having to dip into our savings, life often doesn’t follow the expected path.

But for the sake of comfort and security in later years, we should make robust efforts to catch up on these savings.

The following discusses ways that you can do this—and to do so without having to make too many sacrifices in the here and now.

Retirement Savings SOS

• Build retirement savings from a solid base
• The 5 golden rules of retirement savings catch up

Build your retirement savings from a solid base

No matter what stage of retirement saving you’re at, there are some essential must-do aspects to first put in place. 

• Ditch high-interest debt: Overpaying on the money you owe is akin to burning 100-dollar bills. Whether it be credit cards or loans, throw everything you’ve got at them. Consider switching from lender to lender if there are better interest rates to be had. Always pay off the debt with the highest interest rate first.
• Differentiate your wants from your needs: In other words, do you need that latte on the way to work? Or do you just want it? Create a budget based on necessary monthly expenses and stick to it.
• Increase your earnings: This might be through extra training (or re-training) to earn more money. If you’re closing in on retirement age, would it be worth taking on an extra job or extra hours? If you’ve just hit retirement, what about part-time employment? All of this ‘extra’ money can be plowed into your savings before you retire for good.
• Divert bonus funds to your retirement pot: Got a windfall? A lottery win, work bonus, or inheritance? Instead of spending it now, consider using it to boost your retirement savings. 

The 5 golden rules of retirement savings catch up 

The following are 5 strategic steps to building that all-important fund…

1. If you can, contribute the maximum allowed to your 401K and/or IRA every year. Don’t forget that your employer might match it as well…
2. Can you afford to contribute more to your IRA? Once you hit the magic age of 50 you can add an extra $1,000 per year.
3. Consider your IRA options and use both Traditional and Roth options for your IRA CD and IRA savings account for true tax advantages.
4. Can you take advantage of Saver’s Credit (used to be called Retirement Savings Contributions Credit)? For those who’re eligible, this can have a dramatic positive effect on your financial future.
5. Consider drawing your retirement benefits a few years later. The closer to 70 you wait, the higher your monthly payments will be.  

Of course, it always pays to take professional advice when it comes to all things financial. Catching up on your retirement savings certainly falls into this category. Everyone’s circumstances are different, making it crucial that you take professional advice before making any big decisions.

The key is to keep working at it. Even after a setback, you’ll likely be amazed at, with a little bit of planning and effort, how quickly you can have a positive impact on your retirement savings pot.

Ready to Invest in Your Future? Capita’s Expert Planners Help You Build a Solid Retirement Fund

No matter what stage you’re starting from, Capita’s passion for creating your retirement security is second-to-none. It’s never too early (or too late) to begin saving for those post-work years. Whether you’ve had to dip into funds or have yet to start, they’ll work with you to create an individual plan that will build your nest egg for the future.

There’s no time like the present, and you’ll be surprised how the smallest of actions can see your retirement fund begin to grow.

Take the first step today. Visit https://www.capitafinancialnetwork.com/services/income-planning and get in contact for your first, no-obligation chat about your financial future.