Tips to help you boost your retirement savings

Focus on starting today

Especially if you’re just beginning to put money away for retirement, start saving and investing as much as you can now, and let compound interest — the ability of your assets to generate earnings, which are reinvested to generate their own earnings — have an opportunity to work in your favor.

Contribute to your 401(k)

If your employer offers a traditional 401(k) plan and you are eligible, it allows you to contribute pre-tax money, which can be a significant advantage. Say you’re in the 12% tax bracket and plan to contribute $100 per pay period. Since that money comes out of your paycheck before federal income taxes are assessed, your take-home pay will drop by only $88 (plus the amount of applicable state and local income tax and Social Security and Medicare tax

Meet your employer’s match

If your employer offers to match your 401(k) plan contributions, make sure you contribute at least enough to take full advantage of the match, Greenberg says. For example, an employer may offer to match 50% of employee contributions up to 5% of your salary.

Open an IRA

Consider establishing an individual retirement account (IRA) to help build your nest egg. You have two options: a Traditional IRA may be right for you depending on your income and whether you and/or your spouse have a workplace retirement plan. Contributions to a Traditional IRA may be tax-deductible and the investment earnings have the opportunity to grow tax-deferred until you make withdrawals during retirement.

 Take advantage of catch-up contributions if you are age 50 or older

One of the reasons it’s important to start saving early if you can is that yearly contributions to IRAs and 401(k) plans are limited. The good news? As of the calendar year you reach age 50, you’re eligible to go beyond the normal limits with catch-up contributions to IRAs and 401(k)s.

Stash extra funds

Extra money? Don’t just spend it. Every time you receive a raise, increase your contribution percentage. Dedicate at least half of the new money to your retirement plan. And while it may be tempting to take that tax refund or salary bonus and splurge on a new designer purse or a vacation, ”

Consider delaying Social Security as you get closer to retirement

“This is a big one,” Greenberg says. “For every year you can delay receiving a Social Security payment before you reach age 70, you can increase the amount you receive in the future.” Age 62 is the earliest you can begin receiving Social Security retirement benefits, but for each year you wait (until age 70),

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