Essential Money Saving Tips To Help Boost Your Retirement Savings
With increasing pressure on government funding for social welfare, saving to fund your own retirement is perhaps more important than ever before. We’re also living longer, which means that most of us can expect to spend around thirty years in retirement after we stop working. So it’s essential to have sufficient funds in your retirement savings so that your money doesn’t run out before you do.
It’s never too early to start saving for your retirement. If you’re looking to boost improve your retirement savings, this guide will give you some money saving tips you can use to help improve your retirement savings over time. Let’s take a look now.
Tips On How To Boost Your Retirement Savings
One effective way you can boost your retirement savings is by sacrificing some of your salary during the course of your working life into your superannuation fund. You can arrange this directly with your employer. When you salary sacrifice into superannuation, your employer will deduct the amount you wish to sacrifice and deposit it into your superannuation fund before it reaches your pay packet. There are tax incentives associated with this arrangement that make it an attractive option for many people looking to boost their retirement savings.
During the course of your working life it’s likely that you will work for any number of different companies. It’s possible that you may have contributed into a number of different superannuation funds during this time. It’s easy to lose track of where your superannuation savings are held, particularly in our early years of working when superannuation balances are typically low. If this is the case it’s a good idea to consolidate them into one account, as you may be incurring multiple fees if your superannuation savings are spread across multiple funds. If you’re unsure how to combine your superannuation accounts together, choose the company you want to go with and contact them to see how they may be able to assist you in locating your lost super.
3.Buy Out Of Necessity, Not Want
Many people make the mistake of buying items that they want and not need. This can lead to more money being wasted on unessential items. Instead, it’s a good idea to buy items that you need and try to avoid the items that you want as this will give you more money to play with to allocate towards your retirement savings. You’d be surprised at how much money you can actually save when you don’t buy out of ‘want’ but ‘need’. In the end you’ll be able to buy what you want when you retire.
4. Use Your Mortgage To Your Advantage
Setting up an offset account against your mortgage, depending on the plan you’re currently on, can help you to save money over the term of your loan. An offset account aims to reduce the amount of interest that is charged on your borrowings, helping you to pay off your mortgage sooner. Contact your financial institution to find out whether an offset account may be suitable for you.
Saving for early retirement and boosting your retirement savings is all about making small sacrifices to fund a comfortable lifestyle when you eventually leave the workforce and retire. It also involves careful planning to ensure you’re on track to retire with sufficient savings to fund the retirement lifestyle you hope for. For this reason it’s essential to seek professional advice from a qualified financial adviser.
Steven McMeechan is a strategic marketing and communications specialist with over twenty years’
experience in senior marketing management roles across a range of industries including Information Technology and Financial Services. He works for Capstone Financial Planning and lives in Melbourne Australia.