No matter what stage you’re in when planning for retirement, reviewing your retirement savings plan can help you save more effectively.
If it’s been a while since you re-evaluated your savings plan, you might be surprised to find there are areas in your everyday spending budget where you can cut back to save more for retirement. When you’re looking for new ways to save, consider some of these tips to contribute more money so you can build on your retirement budget.
If you already have automatic transfers in place, you may need to review them to ensure you’re saving enough to obtain your desired standard of living. To determine if your retirement contributions will be able to support you, you can use a retirement savings calculator. If it looks like you may have a shortfall, consider working with a financial planner to adjust your retirement savings plan.
If you’ve recently paid off an expense like a car loan, student loan, or a mortgage, you may consider opening an individual retirement account (IRA) or another savings account and deposit the extra money you have each month (which previously went to those obligations) into the account.
When you use coupons, receive rebates, or get a discount, jot down the amount of money you saved. On a regular basis, add up the total amount of your coupon savings and deposit it into your retirement savings account. While it may not seem like much, these small savings can add up over time and boost your retirement budget.
When you receive a tax refund, unexpected bonus, or other financial windfall, consider setting aside this extra money and adding it to your retirement savings. If you receive a raise at work, increasing your 401(k) contributions and depositing extra cash into an IRA can also help boost your retirement savings.
Many credit cards offer cash back on purchases. If you have a cash back credit card, you may be able to apply your earnings toward your credit card bill to save money. Or you could choose to receive the cash back via direct deposit and place the amount into a retirement account.
To learn more about how to save for retirement, Ask a Citizen at your nearest Citizens Bank Branch.
Disclaimer: Views expressed may not necessarily reflect those of Citizens Bank. The information contained herein is for informational purposes only as a service to the public, and is not legal advice or a substitute for legal counsel, nor does it constitute advertising or a solicitation. You should do your own research and/or contact your own legal or tax advisor for assistance with questions you may have on the information contained herein.