Saving for retirement can be difficult for many but it is definitely feasible with the right gameplan.
The following tips can help to put you on the right track towards retirement:
1. Invest in a 401k
It’s advisable to contribute to your 401(k) plan as soon as you are earning an income that will allow you to set aside money.
You should contribute to your 401(k) as soon as your financially able to.
In 2017, the maximum salary reduction contribution to a 401(k) plan is $18,000. You will be allowed to contribute an extra $6,000 to your savings if your 50th birthday is this year.
2. IRA Catch up Contributions
Regardless of whether you have a savings plan for retirement, alternative options are out there that can help you save money. Roth IRAs and IRAs can give you a huge start on saving for retirement. The minimum contribution is $5,500 and increases by $1,00 after age 50.
3. Simple IRA Catch up Contributions
If your company has a SIMPLE IRA, you can contribute a minimum of $12,500 in 2017 and once you are over 50 years old, you can contribute an additional $3,000. Annual adjustments are possible with basic and catch up contributions for SIMPLE IRAs
4. HSA Contributions
This type of contribution is great if you have a high-deductible health plan. This HSA allows you to contribute to a health savings account on a tax-deductible basis. The contribution depends on several factors and varies for every individual based on whether you have self-only coverage or not.
HSA contributions are perfect if you have a health care plan with a high deductible as you can contribute on a tax deductible bases. The contribution is dependant on a variety of factors, and differs for every person based on if you only have coverage for yourself or not.
5. Social Security Benefits Delaying
At age 62, you can begin collecting social security benefits. You are able to increase the benefits of monthly coverage when you delay the benefits past full retirement.
For example, those at full retirement age (66) who chooses to delay the benefits until they turn 70, will notice an increase in their benefits by 132 percent
While you are able to collect social security benefits at the age of 62, you can get more benefits if you postpone it til you are older. Delaying benefits til age 70 generally increases those benefits by over 100%.(Source).