Retirement is an ongoing concern for most working Americans. Research shows that 62% of Americans feel that they need to catch up with their retirement savings. That means most people are uncomfortable with what they have so far. But there are things that you can do to speed up your retirement savings and try to get caught up. Here are a few strategies to get you started:
1. Fully contribute to your 401k account
The 401k plan provides you with the chance to save a lot of money for retirement. You need to think about adding to it if you are in a financial position to do so. The maximum you can contribute yearly is $19,500. So in 20 years, you would have contributed $390,000 if you remain disciplined. But that would only be the principal. Your investments will increase due to compounding, and your final investments will be worth a lot more by the time you retire.
If you are over 50 years old, you are also allowed to add more funds to the 401k plan to the tune of $6,500. That will enable you to catch up if you had a slow start on your retirement savings. You should consider taking advantage of it if you can.
You don’t have to fully contribute to your 401k plan from Lockheed Martin all at once. You can distribute the cost over 12 months. That translates to about $1,625 per month, which would make saving more manageable.
2. Take advantage of your company match
Some companies like Lockheed Martin have an excellent company match program in place for employees who want to save for retirement. Even if you are not in a financial position to contribute fully, you should add enough for the maximum match possible. Company matches give you access to free money. That is because the company adds on to your retirement savings based on what you contribute and the terms it sets. You should think about taking it and boosting your savings amounts.
3. Save your unexpected extra money
What do you do with any extra money that you get throughout the year? Additional funds include tax refunds, bonuses, birthday presents, inheritance, etc. Perhaps you should think about saving as much of that money as possible. The good thing about the unexpected money you get throughout the year is that you did not plan to use it for anything. That means you would not miss it if you save it. It will help increase your wealth and ensure that you retire earlier or on time.
4. Cut down on living expenses
It is better to sacrifice now that be forced to do so in the future when you are elderly and have no active income. So think about cutting down on your living expenses. Some things you can do is to eat out less often, reduce your entertainment budget, buy used cars, and get an extra job to pay off your credit card debts. You can also cancel memberships and subscriptions you rarely use and negotiate for lower prices on everything if you can get away with it. Consider your budget and necessary expenses to know what you should focus on.
You can save for a comfortable retirement through your retirement plan. But doing so may need you to change your savings strategies. You should do things differently starting today, and you may be able to catch up on your retirement savings.