It's Not Too Late
If you've been letting your retirement account idle, it's time to get going. Here are four simple strategies to power up your plan.
If you've been letting your retirement account idle, it's time to get going. Here are four simple strategies to power up your plan.
Even if you can’t do it all at once, aim to increase your contribution level gradually over time. For example, you might consider raising your contribution rate by one percentage point a year until you hit your goal.
Check to see whether your plan offers employer matching contributions (not all plans do). If it does, find out how much you need to contribute to take full advantage of the match. Matching contributions are like free money that can give your savings an extra boost.
Many plans allow participants to make additional catch-up contributions to their plan accounts starting in the year they reach 50. If your plan includes this feature, it can be a good opportunity to put more money aside for your retirement.
Your plan may let you borrow from your account during your working years or withdraw money if you experience a financial hardship. While it’s nice to know the money is there if you need it, remember that you’re saving for retirement. If at all possible, avoid taking money out of your account for other reasons.
Article is adapted from content provided by DST.
