One day most Americans will face a time when they need to retire. Retirement is supposed to be enjoyable, so setting yourself up for financial stability is a great goal to have.
It’s a good idea to maximize savings for later on down the line.
There are some great ways to do this earlier on in life so when the day comes, you aren’t wondering how you’ll make ends meet.
Here are five ways to boost your retirement savings for the future
A 401k is a great things to have. It’s a plan sponsored by your employer for your retirement.
Some employers match employee contributions up to as much as 5%.
When investing part of your check, employers are also investing free money for you.
Related: What’s the most I can contribute to my 401k in 2022 according to the IRS?
An IRA is another plan if your employer does not offer a 401k. There is no employer match with these, and stricter contribution rules.
Every year the maximum investment is $6,000 for an IRA, but $19,500 for a 401k.
There are broader investment options for IRAs in comparison to 401ks.
It’s good to prepare for social security in the long run. The more you make throughout your working life, the more you’ll get when you retire and collect.
Related: Social Security: 5 things that need to be done before claiming benefits
You’ll make the most with delaying your claim until age 70.
Make sure to claim all your tax credits. By claiming credits you’re eligible for, like the child tax credit or earned income tax credit, you can save that money for retirement.
Cutting your bills now and saving for later is also a great option to have more money in the long run.
By cutting your cable and solely relying on streaming and internet services, you could save over $150 per month.
Related: Save yourself money doing these six things before you go grocery shopping
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