Don’t we all love life hacks that can help make things a little bit easier? I am amazed by the ingenuity that some demonstrate. Who knew I could clean the soles of my athletic shoes with toothpaste?
The best ones are those that save us money. How about retirement life hacks that can help you save for the future? These may be the most important ones of all.
Saving for Retirement is Crucial
No matter how near or far you are from retirement, saving for your future should be a priority. Sadly, many people don’t put that into practice. According to the Employee Benefit Research Institute, 24 percent of workers said they and their spouses together had less than $1,000 saved for retirement. Nearly half said they had less than $25,000. Many of us need a reality check about how much we should save.
The good news is that it’s never too late to start saving, or to start saving more. Below are some retirement life hacks that may help make it more doable.
1. Let Your Employer Kick In
If you have a retirement plan at work that offers matching contributions, take advantage of it and contribute at least the match amount. According to the Bureau of Labor Statistics, the average employer matches 3.5 percent of employee contributions. Do the math and don’t miss out on what you could be saving.
Your 3.5% + Employer’s 3.5% = 7% of your salary saved every year for retirement
2. Take Charge Of Your Retirement
Not everyone has access to a workplace retirement plan, but you can set up your own plan. Individual Retirement Accounts (IRAs) offer many of the same benefits. There’s no match, but like some employer plans, you can receive tax benefits. Explore the different types of IRAs and start investing, even if it’s a small amount. Self-employed individuals can invest in workplace retirement plans like a SEP IRA and also potentially receive business tax deductions on contributions—a win-win for you and your business.