Retirement planning is a critical aspect of personal finance, yet many people find it challenging to save enough money for their golden years. If you’re worried about your retirement plan, it’s not too late to revive it, and if you don’t have a retirement plan, it’s not too late to start!
Retirement plans help ensure that you have enough funds to lead a comfortable life after you retire. However, if you are over the age of 40 and feeling as if you will never have enough funds to retire at the age you would like, do not worry. It’s not too late to revamp your savings.
One way to boost your retirement savings is by making accelerated contributions. While the Internal Revenue Service puts a maximum amount that a person is allowed to contribute each year depending on the type of retirement account, making the maximum contribution could boost your retirement savings quickly. If you are over the age of 50, you can also make catch-up contributions, which is an additional amount allowed to be contributed. See the contribution limits for each type of retirement account here.
Another way to boost your retirement savings is to make the most from your employer’s match (if applicable). Most employers that offer a retirement plan to their employees offer a matching percentage. If you contributed at least to the maximum amount of your employer’s match, this would also help revamp those retirement savings.
Overall, by contributing more than the minimum, you can increase your retirement savings and potentially retire earlier than planned. To get started, review your current retirement plan and determine how much you’re contributing each month. If you’re not contributing the maximum amount allowed, consider increasing your contribution rate.
Making accelerated contributions is an effective way to revive your retirement plan. Another option to go a step further than maximizing contributions is to talk with your financial advisor about retirement planning. Retirement Planning can help you set an age or time in your life when it would be best for you to retire comfortably. A financial advisor can also provide more insight into other strategies or outlets that could help boost your retirement savings.
The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing materials are accurate or complete. This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Gainspoletti Financial Services and not necessarily those of Raymond James. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Raymond James and its advisors do not offer tax or legal advice. You should discuss these matters with the appropriate professional.