5 Ways to Build Retirement Savings During Uncertain Times: Experts Weigh In

Retirement Savings

Over the last two years, American workers have endured the one-two punch of a pandemic-induced recession followed by a rapid increase in inflation. Both have widened the savings gap and increased concerns over financial security, especially when it comes to retirement savings.

According to a survey by Funding Our Future, more than a third of Americans with household incomes below $50,000 report they have less in savings than before the pandemic, and more than half of all Americans are anxious about their current financial situation.

The good news is there are many ways for the average American to help their retirement accounts thrive even during uncertain times. Here are five tips from experts to supercharge your retirement savings plan.

Make Sure You Are Getting the Full Employer Match

Many companies offer to match contributions to your retirement account up to a certain percentage, in addition to your regular salary. If this is news to you, make sure you talk to your employer to see if they offer a match.

Optimize Your Asset Allocation

How much of your money should you have invested in stocks, bonds, and cash? Some investors take a set-it-and-forget-it approach to asset allocation, which can be detrimental to your long-term goals.

“If you signed up years ago and have not increased your contributions, see if you can bump them up a few percentage points. Very often, people get increases in pay but forget to increase their retirement plan contributions,” recommends Stephanie McCullough of Sofia Financial.

Take Advantage of Automatic Contribution Increase

If you have a high-deductible healthcare plan through your employer, your Health Savings Account (HSA) is a commonly missed opportunity to fund future expenses, says Blaine Thiederman, a financial planner at Progress Wealth Management.

Utilize Your HSA for Tax-Free Growth

“If your employer does not offer a retirement plan, do not panic,” says Klokkenga. “You can open a traditional IRA, where you may receive a tax deduction for your contribution, or you can contribute to a Roth IRA, where the distribution is not taxed because you are making contributions with already-taxed dollars.”

No Employer Plan? Use an IRA Instead

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