Forget the Scale — Resolve to Boost Your Retirement Savings in the New Year
By Nikki Young, CFP®
Northwest Financial Advisors
Many of us vow to lose weight and get in better physical shape in the new year. And unfortunately, many of us fail. Instead of spending money on an expensive gym membership or fancy workout gear, consider putting that money toward your retirement nest egg next year.
Increasing your retirement savings may not be as hard as you think. And it sure beats dieting! Here are some tips to help you get started — or restarted — on your retirement savings.
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If your employer offers a retirement savings plan, such as a 401(k) or TSP, take advantage of it! Individuals can contribute up to $23,000 in 2024, but contributing even a small amount over time can help boost your nest egg.
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If your employer plan includes matching contributions, contribute as much as required to receive the match. Otherwise, you’re missing out on “free money.” Sometimes matching funds are subject to vesting. Find out how long you need to stay with your employer to receive all or most of your employer’s matching funds.
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If you receive a raise and are financially stable on your current salary, consider adding the extra income to your retirement savings. For example, if you receive a 3 percent salary increase, increase your retirement contributions by 3 percent.
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If you lost income during the pandemic and stopped your retirement plan contributions, is your income now sufficient to restart them? This is especially important if retiring is not too far away.
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If you don’t have access to an employer-sponsored retirement plan, you can save for retirement through an Individual Retirement Account (IRA). If you’re self-employed, you can open a Simplified Employee Pension (SEP) IRA and save up to 25 percent of your net earnings annually.
A qualified financial advisor can help you determine the appropriate retirement savings strategy for your unique situation. If you need assistance getting your retirement plan into shape, I welcome you to email me at nyoung@nwfllc.com or visit my website to request a complimentary in-person or virtual consultation.
The opinions in this article are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult a qualified professional prior to making a decision.
Nikki Young, CFP®
Financial Advisor
Nikki Young is a Financial Advisor with Northwest Financial Advisors, having joined the firm in April 2017. With over a decade of experience in the financial services industry, Nikki has developed a strong foundation for guiding clients toward their financial goals.
Prior to joining Northwest Financial Advisors, Nikki worked as a Lending and Mortgage Advisor at PenFed Credit Union. Her previous service-oriented positions at Mission Federal Credit Union and Bank of America further developed her expertise in client relations and financial planning.
Passionate about promoting financial well-being across generations, Nikki takes pride in empowering her clients to pursue their aspirations. She holds FINRA Series 6, 63, and 7 licenses,* as well as the esteemed CERTIFIED FINANCIAL PLANNER™ certification. Nikki earned her bachelor’s degree in financial services from Penn State University, establishing a strong educational foundation for her advisory practice.
Nikki grew up in Lake Charles, Louisiana, and has settled in Northern Virginia with her daughter Maela. During her personal time, she enjoys hiking, spending time with family and cheering on the New Orleans Saints football team.
For videos and webinars on various topics, visit Nikki's website at nyoung.nwfllc.com.
*Held with LPL Financial
