canstockphoto8732083How important is it to save for your retirement? It is essential to save up for your retirement savings as early as  possble. After all, the days of employer funded pensions are long gone and the retirement age is often delayed since Social Security is running out of funds.

Some financial advisors strongly recommend that people save enough money to cover at least 75% of their pre-retirement income to fund their retirement savings.

Many people find it challenging to save money to pay their bills since the cost of food, housing and healthcare is constantly on the rise. No matter your age or how much money you’re currently making, there are easy ways you can boost your retirement savings.

Use these tips to increase your retirement savings and ensure that your financial future is secure:

1. Start saving money right now. If you haven’t already started contributing to your 401(k) or any other retirement plan, start now. If you’re unable to contribute 10% of your income, start small. You should try to save 1 or 2 percent of your gross income. Increase the amount that you contribute, especially if you get a raise or receive bonuses from your employer.

When your employer matches a percentage of your 401(k) contribution, you have a 100 percent instant return on your investment. Contribute at least the minimum to qualify for any match offered by your employer when you enroll in the company’s plan.

Open an IRA or Roth IRA if your employer doesn’t offer a 401(k) plan. IRAs can help you to lower your annual tax bill that can give you hundreds of dollars you can use to increase your nest egg. Don’t make the mistake of spending your savings!

2. Delay your retirement. Working longer and retiring at a later age will boost the amount of money that you will receive for your Social Security benefits. This will also shorten the length of time you’ll need to draw from your retirement savings.

As you’re approaching retirement age, look for ways to make additional income streams that are separate from your salary. You can use your skills to freelance your expertise or start a small business or a home-based business. Increasing your income will allow you to add more to retirement savings.

3. Get out of debt. Before you retire, make sure all of your debts are paid off. Most budgets are comprised of debt payments. Therefore, it will make it nearly impossible to add to your retirement savings. The best solution is to create workable budget that will eliminate outstanding debt over a certain time period.

Plan to get out of debt before you retire so that you’ll need to save less for your retirement. As you’re decreasing your debt, you should remain disciplined rather than falling into the trap of experiencing more financial woes or wasting money that can be saved for your retirement fund on unnecessary purchases.

4. Downsize your lifestyle. When you create your budget, take a good look at how much you are paying on your rent or mortgage. Determine if you should move into a smaller house with lower costs. If it have a negative affect on your budget, consider getting a smaller place with lower costs for the upkeep. In addition to downsizing your home, you can sell items that you won’t use any longer and add the proceeds from the sale to add to your retirement savings.

Finding ways to save up for your golden years can be a difficult and time consuming task if you don’t know what to do. However, if you implement these tips, it will make it easier to boost your savings to enjoy a comfortable retirement.

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