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Here are five ways you might be starving your retirement savings.
Also seethree easy retirement savings changes to make if you feel youre not doing enough.
Retirement savings should be considered a regular budget item right alongside housing, utilities and groceries.
Ablogfrom T. Rowe Price recommends saving 15% of your income per year (including any employer contributions).
The easiest way to save for retirement is to open a401(k) accountand max out your contributions.
The money is automatically deducted from your paycheck, meaning you dont really miss it.
The advantage of saving early is that the money will compound, which boosts your savings considerably over time.
Employer matches amount to free money and maximizing your contributions means youll get even more of it.
For example, your employer might match 100% of your contributions up to 6% of your salary.
If you dont take full advantage, its like leaving money on the table.
With few exceptions, youll face early withdrawal penalties if you tap into the account before age 59 1/2.
The penalty is 10% of the withdrawal amount.
Reckless spending not only ruins your budget but also often leads to an increase in your debt load.
Both of these things can put a big dent in your retirement savings.
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