One in six Americans says saving is one of their top financial priorities, according to Bankrate. If you’re looking to boost your savings potential, check out these top 10 tips for saving for retirement.
Start or add to your emergency savings account. Only one in four Americans have enough savings to cover them in an emergency, with more than 25 percent having none at all. Search around for the best interest rates on savings accounts, sign up for direct deposit, and make sure you add a little bit every pay day. This account should remain liquid in the event you need the cash for hospital bills, car repair bills, etc.
- Increase your 401(k) contributions. This is the best way to strengthen your retirement savings, but if you’re only contributing the minimum, you’re not getting the full advantage. Especially when you have an employer match program (this is free money!), go for the max amount and watch your nest egg grow.
- Contribute to your IRA. You and your spouse, as working Americans, are eligible to add to an IRA. As of 2015, if you are under age 50, you can contribute up to $5,500; if you’re older than that, you are allowed up to $6,500. Open the account with a bank, credit union or brokerage firm and invest as you please. This approach to savings makes a great complement to your workplace 401(k).
- Know your goals. According to the Department of Labor, you will need at least 70 percent of your pre-retirement income in order to keep up with your current standard of living once you stop working. Planning ahead is therefore imperative if you want to hit that mark and live comfortably in your golden years.
- Make a partnership. Come up with a plan with a reputable stock