One of the most important financial goals you will ever have is saving for retirement. Despite this, many people struggle to save enough money for retirement due to rising living costs, unexpected expenses, and a lack of clear financial planning. As a result, you might find yourself falling behind.
Even if your retirement savings aren’t enough, don’t beat yourself up about it. According to Bankrate’s latest Retirement Savings Survey, 57 percent of Americans are behind on their retirement savings. In addition, 48 percent of workers with a specific retirement goal do not believe they’ll be able to save that much if they have a specific goal in mind.
Even so, planning for retirement can seem overwhelming—especially when everyone’s advice boils down to saving more money and cutting expenses. While these are practical tips, they may not be suitable for everyone. As such, if you’re having trouble finding extra cash for retirement but want to save more, consider some unique strategies that go beyond traditional financial planning.Here are 15 lesser-known but highly effective ways to boost your retirement savings.
1. Beyond the 401(K): Seek Diverse Paths to Retirement Savings
Your 401(k) should be just one part of your retirement plan. You can also build a comfortable financial future with other strategies. Here are some popular options:- IRAs. Contributions to traditional individual retirement accounts (IRAs) are tax-deductible, while withdrawals from Roth IRAs are tax-free. Banks, credit unions, and brokerage firms typically offer both services.
- Cash savings. Savings accounts, certificates of deposit, and money market accounts provide convenience and safety for short-term goals and emergency funds.
- Annuities. Annuities, which guarantee income in the future, can bring stability, but they also have high fees. In EY’s analysis, people who properly allocate their wealth across investments, permanent life insurance, and deferred income annuities are more likely to achieve long-term success than those who only invest.
- Securities. Mutual funds, exchange-traded funds, stocks, and bonds offer flexibility and potential for growth but do not provide tax benefits.
- Real estate. In addition to providing income and appreciation, rental properties, real estate investment trusts, and crowdfunding can also provide tax benefits.
