6 Ways You Can Triple Your Retirement Savings
Everyone tells us that we should save a nest egg for when we retire. Barely anyone tells us how much we should be saving or what we should be doing with it, however. Most people will put a little aside to supplement their pension, for when they retire. These people could be missing a trick when it comes to their retirement savings though! If you want to leave yourself a comfortable nest egg, then follow some of these clever tips. You could triple your retirement savings.
This is the one trick that any financial expert will tell you definitely works. It may be strange to think about retiring in your twenties, but it has to be done. The earlier you start, the more money you’ll have put aside. Make sure you teach your children and your grandchildren to do the same. This is such a simple yet effective way to boost your retirement savings.
Delay Social Security
Many of us will be tempted to take social security benefits as soon as we’re eligible. However, if you can hold out for a few years then it definitely pays off in the long run. You can technically start claiming a social security pension from the age of 62. If you can put this off for a few years then you’ll get a higher annual amount.
It sounds like an obvious one, but retiring later on in life has its perks. For a start, you won’t have to dip into those social security funds too early. Not only that, but it gives you longer to save up. Instead of jumping ship as soon as you can, put it off for a few more years. Some people also look at getting part time jobs for after they retire. It keeps you busy and keeps the money rolling in.
401(k) and IRA
Make use of all the available options when it comes to your retirement fund. Look into which tax reliefs you can get, what your employer will contribute, and the interest rates. Put at least 20% of your earnings into a retirement fund or invest them in your 401(k) plan. Keep your IRA topped up and make use of your tax-free allowance.
If you’re feeling brave then you can easily triple your retirement savings with clever investing. Flipping houses with IRA is an extremely popular method of making extra money. Good if you’re interested in real estate! You can also invest in stocks, shares and bonds. It all depends on how much of a risk you’re willing to make and how much you have to invest.
Set a Goal
It’s all very well and good coming up with ways to boost those retirement savings. However, how do you know that things are going to plan? Set yourself a goal of how much you want to save by the time you retire. This will make saving easier and also far more rewarding. Use a retirement calculator to work out how much you can save and how long it will take you to hit your goals.
By utilising a few of these tips and tricks at once, you can easily triple your retirement savings. You’ll then have a comfortable nest egg to enjoy those post-work years without worrying if you’ll run out of funds.