6 Ways To Add $100K to Your Retirement Savings, According to Financial Experts
Written by
Yaël Bizouati-Kennedy
Edited by
Molly Sullivan
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It’s no secret that saving for retirement has become problematic for many Americans lately. Inflation, combined with soaring rates, have taken a toll on wallets and left little to set aside for later years.
In fact, 55-year-olds have a median retirement savings of less than $50,000, which is “significantly short of the recommended goal of having eight times one’s annual income saved by this age,” according to a recent Prudential Financial 2024 Pulse of the American Retiree Survey.
Yet, it’s never too late to boost savings, and experts said that while it can be tricky and even seem daunting, adding $100,000 to your retirement savings is feasible with a plan and taking some specific steps.
“Adding $100,000 to your retirement savings is a significant goal, but with the right strategies, it’s achievable for many individuals,” said Chad Gammon, CFP, owner at Custom Fit Financial.
Here are some steps you can take to add that amount to your savings, according to experts.
Be Specific and Realistic
First, some experts said you should take just a moment to congratulate yourself on setting the goal.
“Second, make a plan to do so,” said Tanya Peterson, consumer finance expert and vice president at Achieve.
According to Peterson, the plan needs to be specific and realistic in terms of time.
As she explained, for most people, saving $100,000 in a year won’t be feasible — but it might be in five or 10 years.
“Setting realistic expectations will help you avoid frustration that you are not making enough progress — and avoid the temptation to stop working toward the goal altogether,” she added.
Max Out Matching Contributions
Taking advantage of employer-matching contributions is another way to boost your savings.
As Gammon noted, employer matching contributions are essentially “free money” that can significantly increase your retirement savings.
“Many employers offer to match a percentage of your 401(k) contributions, typically up to a certain limit — such as 3%-6% of your salary,” he said. “Make sure you contribute at least enough to receive the full match.”
Automate Your Savings and Contributions
Automation removes the guesswork and discipline required to consistently save. In turn, Gammon said that by setting up automatic contributions to your retirement accounts, you ensure that a portion of your income is consistently directed toward your savings without relying on manual transfers.
He further noted that some retirement plans have automatic increases where you can increase your contribution rate by 1%-2% each year until you reach the maximum allowable limit.
Track Spending and Make Your Savings One of Your ‘Bills’
Of course, tracking spending can be tedious and time-consuming, but it’s worth it in the long run.
“Then take a hard look at where you can cut back and direct those savings to retirement savings,” Peterson said.
Another tip, according to Peterson: Make your savings a bill to be paid in the budget.
Most credit unions and banks allow automatic transfers from checking to savings accounts, she said, adding that many companies will let you deposit a portion of each paycheck directly into a savings account, too.
“Choose a percent of your income you can save on a consistent basis,” Peterson said.
Change Your Habits
Michael Collins, CFA, founder and CEO of WinCap Financial, argued that one of the most effective ways to add $100,000 to your retirement savings is by increasing your savings rate, or the percentage of each paycheck that goes into savings.
“This can be done by adjusting your budget and cutting unnecessary expenses, freeing up more money to put toward your retirement savings,” Collins said. “Even a small increase in your savings rate can make a significant impact over time.”
Achieve’s Peterson echoed the sentiment, saying that if you are looking to boost your retirement accounts, think about how you might do a few things differently in your life.
For instance, Peterson said this could translate into canceling a health club membership and, instead, exercising outdoors or at home. Or it could mean cutting down on the number of streaming services.
Make Wise Investments
For instance, stocks and mutual funds generally mean growth.
“If you invest a good amount and keep funding it, you can eventually get up to and past $100,000,” said Scott Lieberman, founder of Touchdown Money.
In addition, Gammon suggested investing in low-cost index funds, which he said, are a “low-cost way to achieve broad market exposure, potentially leading to steady growth over time.
“By keeping fees low and diversifying your investments across a wide range of companies, you can capture the overall growth of the stock market without the risks associated with picking individual stocks,” he said.
Finally, you could also consider investing in assets that have the potential for higher returns than traditional savings accounts or CDs.
“This could include stocks, real estate or even starting your own business,” Collins said. “While these investments do carry more risk, they also have the potential for greater gains over time.”
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