10 ACTIONABLE STRATEGIES TO INCREASE YOUR RETIREMENT SAVINGS IN 2025

Retirement savings are essential for financial security, and with new opportunities in 2025, you can maximize your contributions and build a stronger financial future. According to Forbes, here are ten actionable strategies to enhance your retirement savings this year.

1. Maximize Contribution Limits

The IRS raised the 401(k) contribution limit for 2025 to $23,500 for individuals under 50, and $31,000 for those 50 and older. Workers aged 60-63 can contribute up to $34,750 under the SECURE 2.0 Act.

2. Leverage Employer Matching

Take full advantage of your employer’s matching program, often requiring a minimum percentage of your salary to unlock the match. Missing out on this is like leaving free money behind.

3. Automate Contributions

Set up automatic deposits to your retirement accounts to ensure consistent savings. Many plans also offer auto-escalation to gradually increase your contributions over time.

4. Incremental Increases

Boost your savings by increasing contributions incrementally, such as 1% annually. Align these increases with salary raises or bonuses to minimize the impact on your budget.

5. Choose Between Traditional and Roth Accounts

Traditional accounts offer pre-tax savings with deferred taxes, while Roth accounts allow for tax-free growth and withdrawals. Consider your current and future tax brackets when deciding.

6. Redirect Windfalls

Bonuses, tax refunds, or other windfalls can significantly accelerate your savings. Allocate these funds directly to your retirement accounts for long-term growth.

7. Utilize Extra Income

Channel side income or reduced expenses into retirement savings. Use these funds for catch-up contributions or taxable brokerage accounts for further growth.

8. Explore Supplemental Options

Health Savings Accounts (HSAs), spousal IRAs, or taxable brokerage accounts provide additional opportunities to enhance retirement savings beyond traditional plans.

9. Regular Reviews

Periodically reassess your retirement plan, account performance, and contributions. Adjust strategies to stay on track with your goals and take advantage of year-end opportunities.

10. Consult a Financial Advisor

A professional can guide you through complex decisions, optimize your contributions, and ensure your investments align with your goals.

2024-12-29T05:33:41Z