4 Tips for Becoming a Super Saver for Retirement

The average American spends 20 years in retirement, according to the U.S. Department of Labor, but only half of all Americans have even calculated how much they need to save for retirement — and retirement is expensive. Experts estimate that you will need 70 to 90 percent of your preretirement income to maintain your standard of living when you stop working, so no matter where you are in your career, it’s essential to save and keep on saving. Here are four ways to save for retirement and set yourself up for success.

How to Save More for Retirement

These tips can help you maximize your savings and ensure you have enough set aside for a comfortable retirement. 

1. Start Saving Young and Stay the Course

The most successful savers are the people who started with their very first paycheck. For example, if you start working at the age of 20 and put $6,000 a year into a retirement account that earns 7% annually, by the time you’re 55 years old, you could have over $800,000 set aside for retirement. 

1. Understand Your Social Security Benefits — But Don’t Rely on Them

On average, Social Security retirement benefits replace 40 percent of pre-retirement income for retirement beneficiaries. You may be able to estimate your benefit by using the retirement estimator on the Social Security Administration’s website, but keep in mind that it’s only an estimate, not a guarantee. Savvy savers set aside enough money to fund their own retirement and treat Social Security benefits as a bonus.

1. Automate Your Increases and Contributions

To help you reach your retirement goals, many financial advisors recommend you increase the amount you contribute to your retirement accounts by 1% every year until you reach at least 15% of your salary. Whenever possible, have your savings deducted from your paycheck or account automatically so you don’t have a chance to spend the money. You can also boost your retirement account balances by automatically saving a portion of any raises or bonuses you receive and depositing any unexpected windfalls like tax returns into your retirement accounts.

1. Don’t Overdo It

You don’t have to give up the things that bring you joy or peace of mind in order to save every penny for retirement. If you don’t have a healthy emergency fund or are running up credit card debt every month in order to build or max out your retirement account, you may need to reallocate some funds. By identifying priorities and creating a realistic budget, it’s possible to enjoy life now — and well into your golden years. 

We Can Help You Create a Roadmap to Retirement

Farm Bureau’s team of agents and advisors are ready to help you meet your retirement goals. Not only can they help you get started, but they’ll also monitor your plan and regularly evaluate its progress so you can make adjustments that will keep your retirement savings on track. Contact a Farm Bureau agent or advisor today.