Retirement may feel like a distant goal, but taking the right steps now can make a huge difference in your financial security later.
Even if you’re behind on savings, it’s never too late to start improving your retirement strategy. Here are 10 actionable steps to maximize your retirement savings.
No. 1: Track Your Progress
Calculate your net worth monthly or quarterly by accounting for everything you own—retirement accounts, savings, and property—minus everything you owe, like mortgages and loans.
Knowing where you stand helps you set realistic goals and avoid surprises later. Tools like online retirement calculators can simplify this process and keep you on track.
Pro tip: If you have over $150,000 in savings, consider talking to a professional financial advisor. Zoe Financial is a free service that will match you with a pro in your area.
No. 2: Set a Savings Target
Experts recommend saving at least 10 to 15 times your annual salary by retirement. However, this target varies depending on lifestyle, debt, and medical expenses.
If you’re unsure, start small by increasing your savings rate until you hit your goal. Paying off debt before retirement will also help reduce your the target amount you’ll require.
Pro tip: If you have more than $20,000 in unsecured debt, get some professional help. National Debt Relief is one place to turn for free advice and assistance.
No. 3: Contribute Enough to Get the Full Employer Match
If your employer offers a 401(k) with matching contributions, contribute at least enough to secure the full match—it’s essentially free money.
This strategy increases your retirement savings and reduces your taxable income, making it a win-win for your financial health.
No. 4: Open a Roth IRA
A Roth IRA is a tax-advantaged account allowing you to make tax-free withdrawals in retirement. For 2024, you can contribute up to $7,000 (or $8,000 if you’re 50 or older) by the tax filing deadline.
Combining a Roth IRA with a 401(k) diversifies your tax strategy, giving you more flexibility to handle unexpected expenses in retirement.
No. 5: Pursue a Side Hustle
Earning extra income from a side hustle can help you fund your retirement accounts faster. Consider selling unused items online, freelancing, or taking on part-time work.
Even small amounts add up over time, especially when invested wisely. Plus, these earnings can give you more financial freedom now and in the future.
Pro tip: One place to find extra income is by becoming a DoorDash Dasher
No. 6: Maximize Social Security Benefits
Social Security may account for a significant portion of your retirement income, so optimizing your benefits is crucial.
Delaying your claim until age 70 can substantially increase your monthly payments. Use tools like AARP’s Social Security calculator to determine the best strategy for your situation.
No. 7: Save Bonuses and Raises
Instead of spending your next raise or bonus, add it to your retirement savings. Keep 10% for fun, but invest the rest.
This approach helps you avoid lifestyle inflation while accelerating your progress toward retirement goals.
No. 8: Increase Your Contribution Rate
Many employers offer the option to automate annual increases to your retirement contributions. Start with a small percentage and gradually increase it over time.
Since the contributions are deducted from your paycheck before you see them, you won’t miss the money.
No. 9: Consider Delaying Retirement
Working an extra few years can make a significant difference if you’re behind on savings. Delaying retirement increases your savings, grows your Social Security benefits, and reduces the years you’ll need to fund.
Use this time to fine-tune your retirement plan and ensure you’re financially ready for the future.
No. 10: Get Your Partner Involved
Retirement planning is easier when both partners are aligned. Coordinate your savings goals, discuss how you’ll manage expenses, and make joint decisions about major financial milestones.
A unified approach strengthens your financial plan and reduces stress, ensuring you both enjoy retirement to the fullest.
Pro tip: If you’ve got at least $100,000 in investments, check out a free service called SmartAsset. You fill out a short questionnaire and instantly get matched with up to three vetted financial advisors in your area, all legally bound to work in your best interests.
Secure Your Future Today
Maximizing your retirement savings doesn’t happen overnight, but taking these 10 steps can set you on the right path.
You can achieve a financially secure and enjoyable retirement by staying proactive and informed.
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