3 Tricks to Boosting Your Retirement Savings in 2024

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Want to see your long-term savings take off? Read on to see how. 

Last year, Northwestern Mutual reported that the average American had $89,300 saved for retirement. If you’re in your 20s or 30s, that’s certainly a respectable balance. If you’re older, you may want to start ramping up on savings in your brokerage account to avoid a financial crunch later in life.

Meanwhile, one of your financial goals for 2024 may be to boost your retirement savings. To pull that off, use these tricks.

1. Save your entire raise if you can

Maybe your apartment lease recently came up for renewal and your rent is now costing you $80 more per month. If that’s the case, you may need to dip into your 2024 raise to cover the difference. But if your living costs haven’t risen this year and your pay has, you have a prime opportunity to grow your IRA or 401(k) balance.

Take a look at how much larger your paychecks are this year, and, if possible, allocate that extra sum to your retirement savings. But do it soon — you don’t want to get used to having that extra money to spend. If you wait too long, you might sign up for a service or subscription that becomes difficult to cancel, leaving you with less money to save.

2. Claim every dollar your employer will give you in your 401(k)

One common benefit offered by employers is a 401(k) plan. And yours might come with a decent-sized match.

Vanguard reports that as of last year, 95% of its plans offered a matching contribution. So it’s important to understand how your match works and claim it in full.

Remember, when you get free money from your employer in your 401(k), you also get to invest that money. The stock market’s annual average return over the past 50 years has been 10%. If your employer gives you a $3,000 match this year that you invest over the next 25 years at that same return, it’ll be worth about $32,500.

3. Automate the process so you can stay on track

The great thing about saving for retirement in a 401(k) plan is that your contributions are taken as automatic payroll deductions once you tell your employer how much you want to put into your plan. You don’t have to remember to write a check to your 401(k) every month. Rather, the amount you get in your paycheck is less the money you’ve put into your 401(k).

If you don’t have access to a 401(k) and are limited to an IRA, it’s best to make that plan work similarly so you’re not tempted to spend the money you’re supposed to be setting aside for retirement. All you really need to do is set up an automatic transfer from your checking account to your IRA every month. It’s a good way to stay on track and grow your savings nicely.

A boosted retirement plan could do a lot of great things for your future. Follow these tips to grow your savings in 2024.

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