Saving for retirement is key if you want to ensure you can still have fun and do what you want in your later years. By saving for retirement, you’re setting yourself up for a prosperous future. But it can be hard to stick to a routine of putting money away when you need it right now. For that reason, this article will go through the key ways to stay committed to your retirement savings.
1. Choose the right account
There are lots of options to boost your retirement savings. The two most common are a 401(k) and an IRA. Both have their advantages and disadvantages, with the main difference being that your employer might pay into a 401(k) but not into an IRA.
So, going for a 401(k) might be the best option if your employer will also pay into it. This is a great way to grow your retirement savings very quickly. However, with an IRA you have more investment options at your disposal. Each has their own cons too, so it’s important to pick the right one for your specific situation. This will make it less hassle and much easier to stick to your savings plan.
2. Make a realistic plan for the future
The best way to plan for the future is to do exactly that! Make a list of the things you want to be able to do when you retire. This could involve trips you want to go on, the kind of lifestyle you want to live, or even specific products you want to buy when you retire (think new car or even a house).
By planning well in advance, you’ll gain a better understanding of how much you need to save by the time you retire. However, you’ll also have goals to work towards. By planning and visualizing the kinds of things you want to do when you retire, you’ll find it much easier to save for them.
3. Get the help of a financial planner
While it’s easy to imagine the things you want to do when you retire, it can be easy to overlook the essentials. Having a financial planner on hand will allow you to carefully plan out the everyday costs and bills you’ll need to factor into your retired lifestyle. They’ll be able to give you an accurate figure as to how much you need to be saving.
This doesn’t have to sound boring or expensive, as with proper financial planning you could end up saving a lot of money. You could find out that the life you wish to live when you retire will cost a lot less than you originally thought. This could mean you need to put less money away right now, which will definitely make saving much easier!
It’s important to consider your future when you’re young. However, no matter what age you are, you can always make saving for retirement easier by following the 3 tips described above.
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