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.
Steal this billionaire wealth-building technique
The ultra-rich have also been investing in art from big names like Picasso and Bansky for centuries. And it's for a good reason: Contemporary art prices have outpaced the S&P 500 by 136% over the last 27 years.
A new company called Masterworks is now allowing everyday investors to get in on this type of previously-exclusive investment. You can buy a small slice of $1-$30 million paintings from iconic artists, all without needing any art expertise.
If you have at least $10K to invest and are ready to explore diversifying beyond stocks and bonds, see what Masterworks has on offer. (Hurry, they often sell out!)
Calculate how much you will need
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.
Meet with a fee-only financial planner to help you
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.
Max out your retirement contributions for IRA, Roth, and 401(k)
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.
Earn $200 cash rewards bonus with this incredible card
There's a credit card that's making waves with its amazing bonus and benefits. The Wells Fargo Active Cash® Card(Rates and fees) has no annual fee and you can earn $200 after spending $500 in purchases in the first 3 months.
The Active Cash Card puts cash back into your wallet. Cardholders can earn unlimited 2% cash rewards on purchases — easy! That's one of the best cash rewards options available.
This card also offers an intro APR of 0% for 12 months from account opening on purchases and qualifying balance transfers (then 19.74%, 24.74%, or 29.74% Variable). Which is great for someone who wants a break from high interest rates, while still earning rewards.
The best part? There's no annual fee.
Take advantage of catch-up contributions
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.
Earn extra money
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.
Trending Stories
Get a raise
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.
Eliminate high-interest debt
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.
Cut back on spending
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.
Bottom line
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.
Lucrative, Flat-Rate Cash Rewards
FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.
Wells Fargo Active Cash® Card
Current Offer
$200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual Fee
$0
Rewards Rate
Earn unlimited 2% cash rewards on purchases
Benefits
- Low spend threshold for its welcome offer — $200 cash rewards bonus after spending $500 in purchases in the first 3 months
- Cell phone protection benefit (subject to a $25 deductible)
- Can redeem rewards at an ATM for literal cash
Drawbacks
- Foreign transaction fee of 3%
- No bonus categories
- Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 19.74%, 24.74%, or 29.74% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don’t expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Subscribe Today
Want extra-cash moves to come right to you?
Stop browsing endlessly. Get proven ways to earn pocket money, help cover rent, and crush your debt — sent to your inbox daily.
Author Details