Six Ways to Boost Your Retirement Budget
No matter what stage you’re in when planning for your retirement, reviewing your retirement savings plan can help you save more effectively. Read on to learn more about which savings plans can help you meet your goals when saving for retirement. Check out the budgeting tips below to learn how to save more for retirement.
If it’s been a while since you last re-evaluated your retirement 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 have a larger retirement budget:
- Re-evaluate your current savings contributions: 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 certified financial planner to adjust your retirement savings plan.
- Find the best savings vehicles for your current situation: If your retirement is still years away, you may benefit from accounts that offer a higher rate of return if you don’t withdraw funds for a certain period of time. On the other hand, you may want to invest your money in an account with higher liquidity if you’re nearing retirement age. You should also consider the tax implications of Traditional and Roth IRAs.
- Turn payments into savings: If you’ve recently paid off an expense like a car loan, student loans or a mortgage, consider opening an IRA or another savings account and depositing the extra money you have each month (which previously went to those obligations) into the account.
- Hold onto savings when you shop: 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 in your retirement savings account. While it may not seem like much, these small savings can add up over time and boost your retirement budget.
- Reserve your windfalls: When you receive a tax refund, an unexpected bonus or another financial windfall, consider setting aside the 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 you boost your retirement savings.
- Put cash back rewards to work: 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. You can also choose to receive the cash back via direct deposit and place the amount into a retirement account.
Get help refining your retirement budget with Citizens Bank
Whether retirement is far away or right around the corner, make it a habit to review your retirement budget plans often and look for new ways to save. If you’d like some feedback or don’t know where to start, Citizens Bank can help. Our customer service representatives can give you retirement planning advice and show you which products can best help you reach your retirement savings goals. To learn more about your options, stop by a local branch or reach out by phone today.