Catching Up on Retirement Savings
How to make sure you are on track for retirement
According to a new report, 56 percent of adult Americans feel like they are behind where they need to be with retirement savings. While “behind” is a rather ambiguous term, if you feel that way it can be upsetting. Thankfully, there are some things you can do to remedy the situation. Here are some tips to help you feel all caught up.
Assess Your Retirement Numbers
If you feel like you’re behind on your retirement savings, the first step is to find out where, exactly, you should/want to be. Find a retirement calculator online and plug in your details. These calculators can give you a nice ballpark figure that takes into account things you might not, like high medical costs during retirement. And if you don’t think medical costs will be wild during your golden years, think again. In one recent report, the average retired couple needs about $315,000 to cover health care expenses.
Focus on the Big Picture
Feeling behind on retirement savings might cause you a lot of stress. However, try to not lose hope. Focus on the big picture and know that taking concrete steps to catch up will make a big difference.
Add More to Savings
Do what you can to free up extra money and funnel it to your retirement accounts. If your employer has a retirement plan match, make sure you are hitting that mark. That’s free money. If you are over 50, do your best to hit the catch-up contributions too. For an IRA, you can contribute an additional $1,000 a year; for a 401(k) the catch-up limit is $30,000.
Do One Thing: Check a retirement calculator to see where you stand. If you are behind, increase your contributions to your retirement funds. Check out Great Erie's Savings Goal Calculator on our website.
Chris O'Shea/SavvyMoney 2023