Over 50? Here Are 8 Ways To Boost Your Retirement Savings Quickly

Saving for retirement is a major financial goal. If you're over 50 and feel like you're behind on your retirement savings, the good news is that you still have time to save.

So, what can you do to boost your retirement savings with your golden years approaching? Here are a few worthwhile strategies to successfully plan for retirement.

The first step to map out a retirement savings plan is to determine where you are currently. Take a look at how much money, if any, you already have saved for retirement. Also, take the time to consider how much you’ll need to live the life you imagine for retirement.

The exact amount you’ll need varies based on where you plan to live, what type of living situation you prefer, your lifestyle costs, and more. For example, someone planning to retire in New York City and travel extensively will likely need to save more for retirement than someone planning to live in the Midwest and seldom travel.

If you need help adding up the costs, consider using a free online retirement calculator to come up with an estimate. Once you have a clear picture of how much you have to save before retiring, it’s easier to arrange your current finances around that goal.

A fee-only financial advisor can help you dive into the details of your current financial situation and map out how to achieve the retirement you have in mind. A competent financial advisor can break down the steps you’ll need to take.

Working with a fee-only financial advisor is especially useful if you aren’t completely confident in your investing knowledge. They can help you determine which investment strategies are best suited for your retirement and explain tax consequences.

As you build your savins=gs, opting to invest in the right savings vehicles can make a big difference. Traditional IRAs, Roth IRAs, and 401(k)s each offer a tax-advantaged way to save for retirement. If possible, make it a priority to max out your retirement contributions to all of the accounts you have access to.

As of 2024, savers can contribute up to $23,000 to their 401(k). Savers age 50 and older can also contribute up to $7,000 to the IRA of their choice for the year.

Maxing out these retirement accounts can help you make significant headway in your savings journey.

For savers over 50, catch-up contributions are an option for tax-advantaged accounts.

If you are over 50, you can save an additional $1,000 in your IRA, which leads to a total contribution of $8,000 when you max out your account. You can also contribute an additional $7,500 to your 401(k), for a total of $30,500 in contributions for 2024.

Saving for your golden years can be difficult because you still have regular bills to pay for. One way to make room for retirement savings is to make extra money.

The good news is that building an extra stream of income is very possible. Some ways to grow your income include taking online surveys, becoming an online bookkeeper, and proofreading. As you make more income, you can funnel the money into your retirement savings.

Depending on your job situation, you might be well overdue for a raise at work. Make a plan and ask for a bump to your salary.

If you can’t get a raise, consider switching jobs to find an employer willing to pay you more for your experience.

Debt often acts like a drain on your financial resources, especially high-interest debt. If you are dealing with credit card debt, a growing balance can make it difficult to save for retirement.

Consider paying off this debt as soon as possible. When you eliminate the monthly payment, you can redirect the funds to your retirement savings.

Although cutting back on your expenses isn’t always fun, it does offer a way to save for retirement. If possible, look for ways to slash your biggest expenses. In general, Americans spend the most on their housing, cars, and food.

Some ways to save would include downsizing your living situation or trading in your car for an older vehicle. Additionally, skipping takeout meals and grocery shopping with coupons could make room in your budget for savings.

Although saving for retirement is a big goal, it’s possible to boost your savings by earning more, spending less, and paying off high-interest debt.

If you are ready to build a brighter retirement, then try implementing the strategies above to make fast progress.