Most employees are not contributing enough to their retirement accounts to fund a retirement that doesn’t require reducing their standard of living.
When faced with that reality, many employees struggle with how they could possibly save more. But there are a number of ways to begin saving more today for retirement. Check out these three tips:
- Increase your retirement account percentage whenever you get a raise
This is the simplest and most effective way to increase the amount you save. If you receive a 2 percent raise, for example, increase your plan contribution by 1%. This approach guarantees that you will save more and end up with a larger paycheck. - Maximize your employer match
Studies show that at least 20 percent of participants are not contributing enough to receive all of the matching contribution dollars their employer is willing to give. As a GEA employee, you are fortunate that you’ve been auto-enrolled in the My Savings Plan through Fidelity. GEA is putting retirement dollars into a personal account for you throughout the year.
Do you know what the risk-free return is on a 100% matching contribution from your employer? The math is simple: 100%. There is no better investment these participants can make than capturing additional employer matching dollars. GEA matches 100% up to 3%.
If you cannot remember what your contribution currently is, visit www.netbenefits.com.
Not sure if you can afford to increase your contribution? Visit https://nb.fidelity.com/public/nb/401k/tools/calculators/contributioncalculator. - Fully fund your HSA account
Health Savings Accounts are a wonderful way to fund retirement healthcare expenses. You can accumulate tax-free money year after year and roll balances into your retirement. They can pay for prescription drugs, medical premiums, COBRA insurance premiums, dental expenses, Medicare premiums, long-term care insurance premiums and, of course, any co-pays, deductibles and co-insurance amounts.
Start reviewing your status today. Check out “The Story of Two Savers” on Yammer and know that it’s never too early to start saving for your future!