The day when you’ll leave the working world for good and retire may seem way off in the distance. Preparing for that milestone is the key to enjoying your golden years. Whether it’s starting with a savings account at a bank or buying bonds, establishing a nest egg now and watching it grow will help you on your way to a comfortable retirement. Here are several ways you can start growing a retirement fund.

4 Strategies for Growing Retirement Savings

1. Enroll in a 401(k)

Most employers offer 401(k) plans. Whether you’re newly hired or a long-term employee, consider enrolling in your company’s plan. Your pretax contributions come out of each paycheck, and some employers generously match employee contributions, up to a certain level.

2. Open a Savings Account

Savings accounts are easy to manage. Opening one at a local bank is an effective way to build retirement funds. Arrange to transfer a set amount to your savings every pay period. You may find that you don’t miss it. Set annual contribution goals, and raise them should you get a salary increase. 

3. Establish an IRA

An individual retirement account (IRA) is another way to super-charge your long-term savings. Contributions are often tax-deductible, and the earnings from an IRA may be tax-deferred. There are, however, annual limits on how much you can contribute. When you retire, withdrawals from IRAs are taxed as regular income. A financial adviser at a bank can help you determine if a traditional IRA or a Roth IRA would be more beneficial. The gains from a Roth IRA are tax-free.

4. Consolidate Spending

Where might you curb spending? To grow your retirement fund, consider scaling back or eliminating cable subscription services or other nonessentials. Also, pay down your debts to limit interest expense. As you free up money that would otherwise go to paying off credit cards, put it toward your nest egg.

Citizens Bank welcomes the opportunity to help clients create retirement savings plans in Byhalia, Olive, Barton, and Victoria, MS, and Collierville, TN. From traditional savings accounts and money market deposits to IRAs, this FDIC-insured community bank has the tools to accommodate your financial goals. If you need assistance with retirement planning, call (662) 838-2146 to speak to a friendly representative, or visit them online for details about their full lineup of products and services.