5 Ideas to Supercharge Your Retirement Savings

By Linda Descano, Managing Director and Head, Content & Social, North America, Citi February 18, 2014 11:46 AM

While 69% of American consumers are optimistic that their personal financial situation will improve over the coming year, many remain concerned about their current level of saving for retirement, according to the results of a recent Citi national survey conducted by Hart Research. In fact, next to health care, retirement ranked #2 of financial issues keeping Americans awake at night.

Saving enough for a comfortable retirement can seem utterly daunting. But there are ways to supercharge your retirement savings. Here are 5 ideas to consider:

1. Make time your friend. Starting early and saving consistently is the best gift you can give your future self. The earlier you start, the more money you have working for you (through compounding) and the more you can potentially earn.

2. Do the math. Take advantage of online retirement calculators to help you think through your retirement goals and how to fund them. Your bank probably offers one, and you also may want to check out calculators from Choose to Save and AARP. Keep in mind that the questions are different, so you may wind up with different results. And remember: you don't have to do this alone. A financial professional can work with you to create a personal action plan that fits your life and dreams.

3. Don't leave money on the table. Many employers will match employee contributions to a 401(k) or 403(b) plan, up to a pre-set cap. In some companies, the match could be as high as 50%, so for every $1 you contribute, your employer would contribute 50 cents. It's free money, so why pass it up?

4. Aim for the ceiling, not the floor. Every year the Internal Revenue Service updates the maximum taxpayers can put away in 401(k)s and/or IRAs. Check the IRS website for the 2014 limits and strive to increase - if not max out - your contributions if you can.

5. Play catch up. If you are age 50 or over, take advantage of the IRS rule that allows you to make an additional contribution to qualified retirement accounts, e.g., 401(k)s, 403(b)s and IRAs.

For additional help take your retirement planning up a notch (or two!), don't forget that Citi's Women & Co. has a range of retirement resources to help.