4 Ways to Save for Retirement - Dave's Wallet

4 Ways to Save for Retirement


According to an October 2017 survey by the Government Accountability Office (GAO), the median retirement savings for the average American between 55 and 64 was only $107,000.

While it may sound like a good amount, the truth is that it’s not enough. In fact, most experts believe that your retirement income should be at least 80% of your final pre-retirement salary.

This equals to $40,000 per year if you make $50,000 annually. If you are like most people, then you must be struggling to save money for retirement.

Check out some tips on how to have a good retirement:

1. Start Right Away

Image by Gerd Altmann from Pixabay

Don’t just sit and worry about a lack of savings. Start saving today. You can open an individual retirement account, better known as an IRA.

You also have the option to automate your savings. If you do not get to save enough money then consider reducing your expenses.

2. Make Use of Your 401(k)

If you are eligible then make use of the 401(k) option. It lets you contribute pre-tax money, which can make a lot of a difference to your financial situation.

Also, make sure to take advantage of catch-up contributions if you’re eligible (50 or older).

3. Employer’s Match

If your employer matches your 401(k) contributions then make sure to take proper advantage of it by contributing enough to avail all that ‘free’ money.

4. Delay Social Security

The more you delay, the bigger will be the sum you finally receive. Social security payments start coming at age 62 but you can wait until 70 to receive payments.

Start planning for your retirement today so that you can leave a peaceful life after you have hanged the boots.