If you’re like most people, you are probably a few years behind in your retirement savings plan. And you are right to worry if you think this might affect your life post-retirement. The good thing is you don’t have to call an emergency meeting with your HR manager to discuss ways out. 2023 brings another opportunity to evaluate your retirement savings strategy and make the necessary changes. So, it’s not late to make the most of your retirement savings.
There’s no better person than Roger Scott, head trader at WealthPress and a featured trading strategist on CNBC, CNN, Forbes, and Fox Business, to walk you through ways to maximize your employer’s retirement plan in 2023. Follow his simple strategies to change your fortune and prepare for a stress-free life when you decide to hit the brakes on your career.
Most people consider getting their full match from their employer to be irrelevant. Although a few percent of your salary may not seem much, over time, they significantly increase your total retirement savings.
If you are not certain what your match benefits are, contact your HR to get the full details and also help you to adjust your contributions to the minimum level required to get the match.
Many workplaces automatically sign-up new employees for a retirement account. Typically, they allocate 3% of new employee pay to their retirement savings plan. However, 3% of your salary may not be enough to maintain your current lifestyle during retirement. So, increasing your contributions to about 10-20% would do you great good, especially when you get a pay rise. To balance your current lifestyle with your savings, save 1 or 2% more after every pay rise till you can save up to 10-20%
Some investment options come with skyrocketed fees that significantly reduce your savings throughout your career. So, when choosing a retirement savings plan, go for low-cost investments. Generally, it is expected that you contribute only the amount you don’t mind losing then. This way, you will not be tempted to withdraw your savings before time, which brings us to the next strategy.
Many workers do not spend enough time in their companies to be fully vetted in their retirement plan, which takes about five to six years. When workers switch jobs, they are usually tempted to spend the balance at their previous workplaces. However tempting it may be, it is crucial to understand that withdrawing money from your retirement savings balance before the age of 59 will be charged with a 10% penalty. Also, if you make a premature withdrawal, you must pay tax on the amount withdrawn.
Saving for retirement without a goal is synonymous with paving the way for failure. You might start a business during retirement or trade the stock market. Either way, ensure you get advice from business advisers on possible ventures or a stock trade expert like Roger Scott to get trading tactics. You can self-study to understand how the business world works by following platforms like WealthPress to learn the basics of the stock market.
Most people are behind schedule in their retirement saving plan. Not getting back on track could prove to be devastating for retirement life and could make years of hard work go down the drain. So, maximizing your employer’s recruitment plan is your best bet to ensure you get back on track and prepare for the ideal retirement life.