Retirement funds can tick away in the background, and you might be surprised by how much you
can earn without any extra effort as you go about your daily life. However, the cost-of-living crisis
has many people viewing their retirement funds with a critical eye, and some earners are worried
that they won’t have enough money set aside to live comfortably in their golden years. While
having a retirement fund to begin with is an excellent first step, taking these additional steps might
enable you to boost your earnings beyond what you thought possible.
Involve the Experts
Once you set up your retirement fund and start contributing a portion of your earnings toward it,
it’s not uncommon for the average person to rarely hear from their retirement fund providers
again. However, that doesn’t mean you can’t be proactive and reach out to fund experts for help.
For example, Australians with self-managed super funds might like to contact SMSF accountants
to learn about investment options and the best asset classes to consider. Americans with
retirement funds like a 401(k) could meet with their providers to find out what they could be doing
to maximize their future nest egg.
Contribute to a 401(k) Account
Many employers offer traditional 401(k) plans that enable you to contribute pre-tax income to an
account you can use for your retirement in later years. While the thought of less money in the
hand at the end of a pay period can seem daunting, your future self might thank you for the
commitment. What’s more, some employers are willing to match your plan contributions. Not
having a 401(k) account means you’re essentially missing out on free money.
Capitalize on Catch-Up Contributions
Many people get frustrated at themselves in their younger years for not saving as much money as
they would have liked to for their retirement. Fortunately, you have a chance to change your
situation in your later years.
If you’re 50 or older, you can request to make catch-up contributions, which are higher regular
payments to your IRAs and 401(k)s to make up for lower payments in past years. This can provide
much-needed peace of mind for people who are worried about having to seek out earning opportunities in their golden years because their retirement funds aren’t sufficient for their living
costs.
Increase Your Contribution Rate
Some people only contribute the minimum amount to their retirement funds because they need as
much of their paycheck as possible for everyday living costs. However, if you were to increase your
contribution fund to meet the average of around 13%, you might improve your chances of enjoying
more comfortable retirement years.
Every little bit extra count, so don’t be afraid to look at your weekly expenditure to see if you can
cut costs and increase your contribution. Aim to meet the minimum threshold for your employer
to contribute to enjoy free money that might not otherwise be available.
Boosting your retirement savings might be the last thing you want to worry about when you’re taking
each day asit comes. However, every day you enjoy is one day closer to retirement. The more changes you
make now, the more financial freedom you might have in your golden years.
