You should never wait until you reach a ripe age before you start saving up for your retirement. If you want a comfortable life when you get old, then now is the time to start saving up for your future and to start getting serious about how much you invest on a monthly basis. The key to a great retirement plan is consistency. Create yourself a target and stick to it no matter how tight things get. Here are some great tips on how to boost your retirement savings in 2016;
Set a monthly goal
You should have a monthly or weekly savings goal and decide on the minimum amount for monthly retirement savings and it should be paid along with your other expenses such as groceries and rent. Don’t wait until the end of the month to set the money aside because you could get side tracked and spend it unknowingly.
Automate your savings
If you have trouble with saving money, then investing in a retirement plan is the best option. Try and have the amount deducted from your paycheck or on debit order directly into your savings account. This way you will never end up skipping out on a payment.
Limit the amount of savings accounts and retirement plans
A lot of people will tell you to never put all your eggs in the same basket. This is good advice if you are planning on investing in high risk companies but you should be wary of having too many accounts since the account costs could end up eating away your savings. Limit the amount of accounts and retirement plans so you can have a greater estimation on your savings amounts and budget more effectively.
Purchasing extra property such as granny flats or homes in retirement villages are great for increasing your savings and will provide you with security for when you retire. You can let out your retirement home or granny flat to cover the purchase cost and once the flat is paid off, the extra income can serve as an increase in your retirement investment. You should take careful consideration when choosing property and do effective market research on the area and its prospective future so you don’t end up purchasing property that will have a decrease in value over the next 10 – 30 years. You should also focus on a place that is to your liking and suitable for retirement.
Increase your annual savings amount
The amount you save annually should be increased to compensate for general inflation increases. If there was a 7 percent annual inflation increase in your country then the amount you save each month should also be increased with 7 percent or you will end up saving less and less each month despite the fact that the amount deducted stays the same.
Increase your retirement savings after each raise
Whenever you get a raise or promoted in your workplace, you should also increase the amount you are saving for retirement. The more you save up the better your retirement life will be.