7 Tips to Help You Boose Your Retirement Savings

Family Finances | Retirement

Most people hope to retire one day, but many don’t know how to get there. Saving enough money to retire can be a scary task, especially if you’re just starting out. But developing a plan and taking advantage of every savings opportunity available to you, can help ease the stress and set you on the path to financial freedom in your retirement years.

Here are seven tips to consider when trying to boot your retirement savings.

1. Start saving today

Getting started as soon as you can has a big impact on your retirement in the future. For many people, retirement is decades away, so the money you save today will have more time to grow and be worth more during retirement than the money you invest later on.

But what if you don’t have a lot of money to save now? That’s ok! Starting small can still make an impact. If you start investing $75 per month during your 20s, you’ll have more at age 65 than if you waited to start saving $100 per month in your 30s. The extra time your money has to earn interest and grow, could mean the difference between retiring or working a few more years.

2. Contribute to your 401(k) or workplace retirement plan

The easiest way to start investing is through an employer sponsored retirement plan, such as a 401(k) plan. With a workplace retirement plan, you can decide how much you’d like to contribute toward your plan each pay period. Some employers will even match your contributions, up to a certain amount.

Workplace retirement plans can take several forms. The two most common are 401(k) and 403(b) plans. But if you are self-employed or a small business owner, there are retirement options available to you as well.

Employer 401(k)

A 401(k) is a retirement savings plan offered by an employer, allowing you to contribute a portion of your salary into an investment account. The contributions are often made pre-tax, which can reduce taxable income for the year. Employers may also offer matching contributions, meaning they will contribute additional funds to your 401(k) based on your own contributions. This account grows over time through investments and is intended to provide financial security in retirement. There are rules about when and how you can access the funds, with penalties for early withdrawals.

Employer 403(b)

A 403(b) is a retirement savings plan offered by certain employers, typically in the public sector or non-profit organizations, such as schools, hospitals, and charities. Similar to a 401(k), employees can contribute a portion of their salary on a pre-tax basis, which reduces their taxable income for the year. However, they tend to have fewer investment options than 401(k) plans, and it is less common for employers to offer contribution matching. The money in a 403(b) grows tax-deferred until withdrawn, usually in retirement.

Solo 401(k)s, SIMPLE IRAs, and SEP IRAs

If you’re self-employed or own a small business, additional retirement plan options are available to you. Each have their own rules and regulations. These include, Solo 401(k)s, SIMPLE IRAs, and SEP IRAs.

3. Use your employer’s company match

Another bonus of workplace retirement plans is the employer match. An employer match for a retirement plan is when your employer contributes additional money to your retirement account based on how much you contribute. For example, if you contribute a certain percentage of your salary to your 401(k) or 403(b), your employer may match a portion of that contribution, often dollar-for-dollar or up to a certain limit. You always want to make sure you’re at least contributing enough to receive the full amount of any employer match available to you.

4. Deal with your debt as soon as possible

One thing that has a major impact on your ability to save is debt. This is especially true if you’re trying to save for retirement. Focus on paying off high-cost debt such as credit card balances and student loans. These loans come with higher interest rates, making it vital to pay-off as soon as possible. Additionally, if you have a mortgage, you want to try and pay it off before reaching retirement age – this will make living on a fixed-income easier.

5. Open an IRA

A great way to boost your retirement savings is by opening an individual retirement account (IRA). Unlike your employers 401(k), IRAs come with many more investment options such as individual stocks, bonds, ETFs, mutual funds, and more. In 2025, contributions are limited to $7,000 or $8,000 if you’re age 50 or older.

• Traditional IRA: Contributions to a Traditional IRA may be tax-deductible in the year they are made, providing an immediate reduction in taxable income. Earnings and gains are generally not taxed until the account holder begins making withdrawals. Once you reach age 73, you must start making withdrawals.
• Roth IRA: Contributions to a Roth IRA are made with after-tax dollars, meaning they are not tax-deductible. However, qualified withdrawals in retirement are tax-free. Roth IRAs do not require you to take withdrawals, so you can let the money grow longer and pass it on to your heirs or donate it to a charitable organization.

6. Budget Spending

Understanding how you’re spending money today can help you better prepare for retirement. Usually there are habits or patterns that arise when making and tracking your monthly budget that can be eliminated or limited to help you boost your savings. Remember, saving small amounts of money now can really add up overtime.

7. Don’t forget to plan for health insurance

Premiums, out-of-pocket expenses, and critical care not covered by Medicare can quickly deplete your retirement savings. In 2023, a healthy 65-year-old couple who retired, will likely use nearly 70% of their lifetime Social Security benefits to cover their medical costs in retirement.* That’s why it’s important to plan for your medical expense for retirement.

Here are a few things to consider:

• How much could medical expenses cost me in retirement?
• What does Medicare cover, and how much does it cost?
• What if I retire before I’m eligible for Medicare at age 65?
• What about my future long-term needs?
• Are there other ways to prepare for healthcare costs in retirement?
  • In short, the answer is yes. You could self-fund by increasing the amount you save in your 401(k) or other retirement accounts. Or you could apply for a health savings account (HSA) and begin saving money while reaping the potential tax advantages.

Conclusion

Boosting your retirement savings requires consistent action and smart strategies. By maximizing contributions leveraging tax advantages, seeking the advice of professional advisors, you can secure a stable financial future.

*HealthView Services, “Medicare and Social Security COLAs: Putting the 2023 Numbers into Context,” October 2023.

The content provided in this blog is for informational purposes only. Nothing stated is to be construed as financial or legal advice. Some products not offered by JVB. JVB does not endorse any third parties, including, but not limited to, referenced individuals, companies, organizations, products, blogs, or websites. JVB does not warrant any advice provided by third parties. JVB does not guarantee the accuracy or completeness of the information provided by third parties. JVB recommends that you seek the advice of a qualified financial, tax, legal, or other professional if you have questions.

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