Chris O'Shea
Retirement can seem far away, but it’ll be here before you know it. That means you should be thinking of how you’ll afford your golden years way before they arrive. Here are three moves to make that will help set you up for a comfortable retirement.
1. Match It
If your company has a 401(k) plan, that’s great. If your company has a plan and a contribution match, that’s even better.
- Check with your company about the 401(k) match amount.
- Aim to hit the match amount or more. (That’s free money you don’t want to leave on the table, especially if you have many years before retirement.)
- Try to max out your 401(k) contributions.
2. Save, Save, Save
Everyone is different, but you should aim to save as much as possible for retirement as you can. Not sure how much to save? You can use a retirement calculator. You can also go by the general rule of thumb to save about 15 percent of your income for your golden years.
3. Play Catch Up
If you are later in your career, take advantage of catch-up contributions.
- If you’re over 50, you can save an extra $1,000 in your IRA, bringing the total to $8,000.
- For those over 50 with a 401(k), you can save up to $31,000. That’s an extra $7,500 in catch-up contributions.
- Those under 50 can only contribute $23,500 to their 401(k).
Do One Thing: Make sure you are using a 401(k) employer match if your company offers one.
