ist Magazine February 2022

Feature 5 Retirement Readiness Hacks to Help You Save Smarter

W hat are your goals for the fu- ture? If retirement planning is top of mind, you’re not alone. According to new research from Empower and Personal Capital, 36% of Americans are making retirement planning a priority this year. That’s more than those who said losing weight (28%), buying a house (14%) or getting a new job (11%). Whether you’re just getting started or looking to kick it up a notch, here are some of the best ways to save for retirement in 2022 and beyond: It’s important to look at your finances from where you are in the present and where you want to be in the future. Make sure you’re in a good spot now, so you can stay on track to accomplish future financial goals. One simple way to start is under- standing where your money is going and any barriers that are holding you back from meeting your goals. Utilize online tools that can help provide a holistic snapshot of your financial life and commit to making changes where necessary. For example, determine areas you can decrease spending and put more money toward saving. 2. Maximize retirement savings plan perks. Don’t leave “free” money on the table. If you have an employer-sponsored 401(k) plan (or 403b, 457 or other), enroll and meet your match. This is the money your employer provides to match what you set aside for retirement, so you can save more than if you did it individually. Additionally, check out the IRS 401(k) limits and consider maxing out your contribution. For 2022, the IRS allows individual contributions of $20,500 per person and $27,000 (including catch-up contributions) for people age 50 and older. If that’s not possible, consider increasing your contribution a bit every year. Remember to explore all options of your employer’s retirement plan to create a savings approach that is right for you. For example, some employers offer a Roth 401(k), which is funded 1. Understand your complete financial picture.

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February 2022 istmagazine.com