3 Easy Retirement Savings Changes To Make for Those Who Feel They Aren’t Doing Enough
Written by
Nick Perry
Edited by
Ashleigh Ray
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Saving for retirement can be hard, no matter who you are. In fact, a 2024 Ramsey Solutions report revealed that an astounding 61% of Americans feel they’re not keeping up with their retirement savings goals.
But everybody deserves to retire comfortably. If you feel you’re at risk of not meeting your retirement goals, these simple tips can help you get back on track.
Limit Your Debt
Sure, this is easier said than done in a culture that promotes debt as much as ours does. According to the Federal Reserve Bank of New York, 73% of Americans have had debt at some point in their lives in the form of credit cards, auto loans, student loans, mortgages and much more.Â
However, debt almost always incurs interest, making it extremely expensive to carry. Sometimes, debt is unavoidable, like if you’re getting a degree or buying a house. But a lot of debt is avoidable, especially high-interest debt like credit cards.
The same Ramsey Solutions report showed that 37% of Americans say they owe more money on their credit cards than they have in retirement savings. That’s a huge and very avoidable issue.
Making sure you pay your credit card balance in full every month will help you avoid high-interest debt. Work on building an emergency fund so you don’t need to use credit cards to pay for car repairs, medical bills and other unplanned expenses.
If you need to set limits on yourself, use a debit card. Ultimately, by limiting your debt, you’re keeping more to put towards retirement savings.
Get a High-Yield Savings Account
The Ramsey Solutions report also found that 44% of Americans are more satisfied with their current savings than their retirement savings. But the two are more related than you might think.
The more you can save now to support everyday and emergency expenses, the less likely it is that you’ll have to dip into your retirement savings early.
Many financial institutions today offer high-yield savings accounts that have real returns. (No more .02 monthly interest gains!) With some banks, you may even find average percentage yields (APYs) of 5% or higher. That means on an account with $10,000, you’d earn $500 in interest for the year, or $41.66 every month.
Every American has many banks and credit unions to choose from. In today’s market, there’s no reason not to use a bank that offers high yields on your savings accounts. After all, you should be rewarded for saving money, especially when it’s keeping you from dipping into your retirement too early.
Automate Your Savings
Whether you have a 401(k), a Roth IRA or something else for your retirement savings, automating your savings plan is the best way to make sure you’re putting away money every month. Many Americans automatically deposit some of each paycheck into a retirement account. If you’re not doing that, it’s never too late to start.
You can also use your financial institution’s tools to automate deposits at the same time every month to make sure you’re saving. Remember, anything you put into a retirement account will appreciate with the market over time, so it’s always in your best interest to start early to maximize returns. Even $25 each month will likely turn into several thousand after a decade or two.
Another interesting finding from the Ramsey Solutions report is 70% of Gen Zers and millennials say they feel behind on their savings. But they have the most time to make up that ground. By managing spending priorities and automating deposits into a retirement account as soon as possible, Gen Z and millennials can meet their retirement goals just like their older peers.
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