Retirement savings are supposed to give you peace of mind, but everyone stresses over whether they're doing enough.
If you have some savings socked away, rejoice! According to the Federal Reserve, nearly a quarter of Americans don’t have any retirement savings at all.
If you've put some money away for your golden years, heck, even if you haven't put aside a single cent, it’s still possible to increase your savings — and ensure that your retirement will be just as enjoyable as all those commercials for senior vitamins make it out to be.
Here are six smart ways you can boost your retirement savings.
1. Get your money's worth from your employer
If your employer matches contributions into retirement savings plans like a 401(k), find out your company's maximum match — usually 3% to 6% of your annual salary — and contribute the same amount.
If you’re not taking full advantage of your employer's 401(k) matching policy, you’re basically throwing away free money.
Though the IRS puts limits on the maximum contribution you can make each year to your 401(k), employer-match contributions don’t count towards your limit.
Ideally, you should put as much into your 401(k) as the taxman allows, but even if you can contribute only 1% more than your company's matching contribution, it will make a huge difference.
Say you make $50,000 a year and your employer matches your contribution up to 4%. After 30 years, with a 5% rate of return, you’ll have saved $144,843. And if you contribute just 1% more each week, you’ll save an extra $34,818. Not too shabby!
2. Seek out financial advice from a pro
If you aren’t lucky enough to have a retirement plan, or if your employer doesn’t offer a 401(k) match, don’t worry — there are other ways you can save.
Facet Wealth is an online financial planning service that provides top-of-the-line financial advice without the high fees.
Facet Wealth will connect you with a certified financial planner (CFP) who can help you build a personalized retirement plan to fit your lifestyle.
In just a 30-minute call, your CFP will review your finances and long-term saving goals and make a recommendation for a comprehensive financial plan, including how much you should save for your retirement.
If you like what you hear, you can choose to hire Facet Wealth under a variety of plans tailored to accommodate your budget and needs. Once you sign up, your CFP will always be available to answer your questions whenever you need financial advice.
It’s total freedom from retirement stress at just a fraction of the cost.
3. Let this company pay your credit card bill
Got credit card debt? No judgment here — it happens to the best of us. But mounting debt can be a huge stumbling block when you’re trying to save up for your retirement.
The best way to prevent your credit card bill from standing in the way of your retirement savings is to work with a company like Fiona.
Fiona will show you the best lending options to refinance or consolidate your debt and can save you thousands of dollars in interest charges.
Fiona will match you with a loan of up to $100,000 based on your credit score, with a fixed interest rate as low as 3.84%. Your loan’s repayment plan can range from 24 to 84 months.
Let’s say you ran up $12,500 in debt on a store credit card with a punishing 22.99% interest rate. If you were to trade in that debt for an 84-month personal loan at 5% interest, you’d save $10,400 in interest.
Just think about how many early-bird breakfasts that will pay for when you retire.
Comparing rates on Fiona won’t hurt your credit score, so even if you’re just curious about your options it’s worth taking a look.
4. Ask this company to help you prioritize your bills
One of the hardest parts about saving for your retirement can be knowing what you should prioritize when it comes to paying your bills.
Everyone’s strategy for improving their credit score is different. For example, some people just do nothing and hope their scores will just work themselves out. This is not a good strategy. At all.
If you’re one of those people, or if you’re not exactly sure whether you’re on the right track, Credit Sesame can help.
Credit Sesame is a free service that will monitor your credit and give you personalized recommendations on which bills to pay off first and what other steps you can take to improve your credit score.
They’ll also make sure your credit isn’t being affected by mistakes in your credit report. You’d be surprised how often those can crop up — according to the Federal Trade Commission, one in five credit reports contains errors.
By finding and correcting credit errors, Credit Sesame may be able to boost your credit score by hundreds of points and make saving for your retirement a lot more manageable.
5. Stop overpaying for auto insurance
When you’re saving for retirement, every penny counts. So why are you overpaying for car insurance?
You should be shopping for car insurance rates at least twice a year. That’s right, every six months.
It may sound like an endeavor, but the savings will be worth it.
And with the help of a company like Assurance, comparing quotes from multiple insurance companies is a breeze. In just minutes you’ll know whether you’re getting the lowest rate possible, and which insurer you should switch to if you’re not.
6. Leave your family up to $1 million in life insurance
Making sure that you have enough stashed away for when you retire is one thing, but you also should think about what your family would do if you were taken from them by a serious accident or illness. It probably won’t happen anytime soon, but it’s smart to be prepared.
Taking out a life insurance policy is a great way to ensure that your family will be financially secure after you’re gone.
If you’re worried that setting up a life insurance policy will be time-consuming, pricey, and maybe even a bit awkward, don’t be. Quotacy lets you compare insurance rates without sharing your personal data.
In just minutes, Quotacy will give you three rates that are customized to your needs. Depending on your age and your home state, you can get an insurance policy offering $1 million in coverage for less than $7 a week. If that doesn’t give you peace of mind, nothing will.