Elder man shaking hands with financial advisor about retirement savings

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How to Save for Retirement

Ways to Save Money for Retirement

Retirement is a life event we should celebrate — a chapter in which each day becomes about what we want to do instead of what we have to do. It’s supposed to be the best part of our lives. However, in order to enjoy these years to the fullest, we need to have the appropriate amount in savings.

According to a recent study, only two-thirds of baby boomers feel confident in their current retirement savings. If you believe you’re in the other third, we’ve listed a few tips below about how to save for retirement and make this phase of life financially sound.

How to Save for Retirement: Tips

To start saving for retirement, find out if your company offers a 401(k) benefit — even better if the employer matches your personal contributions. An employer match is effectively “free money.” For example, if your employer offers to match 100% up to 3% and 50% up to 5%, that means when you contribute 5% of your paycheck to your 401(k), your company will match it with 4%. That can mean a significant increase in your yearly savings and the interest it earns.

While your 401(k) can do a lot, it still may not feel like enough. If you want to further your savings, open an independent retirement account (IRA). Depending on your financial situation, a financial advisor can help you choose between a Traditional or Roth IRA. As you’re setting up your retirement accounts, automate your savings. Automating means the money will move directly from your paycheck to your retirement account. You won’t have to think about it, budget separately for it, and you’ll never miss a contribution.

To extend your savings, consider extending your career. While you may be eager to start your retirement, maxing out your 401(k) for even three more years can make a big difference in the long run. With that in mind, lengthening your career years also means delaying Social Security, making this decision doubly beneficial. For every year you delay your Social Security benefits , they increase by 8% for life.

Lastly, if you haven’t been contributing to your retirement savings as much as you should or even at all, today is the best day to start. Small amounts add up to substantial savings later, due to compound interest. Then, set a goal or adjust your old one. Many people put money away without knowing exactly how much they’ll need to have the retirement of their dreams. If you don’t know what your goal should be, speak to a financial advisor about your current and possible future expenses so they can help you achieve your financial goals.

Make a Smart Decision at the Time of Retirement

Many older adults are surprised to learn the tremendous value of choosing The Glebe in Daleville, VA, a Life Plan Community (also known as a continuing care retirement community, or CCRC). In addition to active independent living, The Glebe’s Life Care contract option secures predictable rates on health services, protecting residents and their heirs against the ever-rising costs of care on the open market.

Speak with an Expert

The Glebe’s senior living counselors are knowledgeable and always available to offer guidance about your senior living options, including financial considerations of each. During your personal consultation, we’ll walk through your goals, budget, preferences and any concerns you may have to help you find a plan that suits your needs. To get started, contact us today. We look forward to meeting you.