3 Smart Ways to Stretch Your Retirement Savings
Try these strategies to make your nest egg grow faster and last longer.
When retirement starts to come into view and the number of years to build your nest egg is dwindling, you need new strategies to supercharge your savings.
We've got some levers you can pull to boost the chances that your pot of hard-earned money will last throughout your retirement.
Make Catch-Up Contributions
First, the bedrock of retirement planning is to save as much as you can, so make use of catch-up contributions if you're eligible. Starting in the year you turn 50, the IRS lets you put even more away for retirement -- an extra $5,500 per year for a 401(k), and an extra $1,000 for an IRA. In 2015, the catch-up contribution for 401(k)s climbs to $6,000.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Claim Social Security Strategically
Second, be strategic about when to claim Social Security. Waiting to claim until you reach full retirement age -- which ranges from 66 to 67, depending on the year you were born -- gives you 100% of your benefit. If you claim Social Security before you reach your full retirement age, your benefits will be reduced. If you can wait past full retirement age to take benefits, you can get even more money. You'll earn 8% a year in delayed-retirement credits for each year you wait, up to age 70.
Factor In Taxes on Retirees
Finally, start planning now about where you're going to retire, because there are big differences in how states tax retirement savings. Some of the most generous exclude all retirement income from state tax; others exempt a certain amount that could run into the thousands of dollars or just a couple of hundred. The sources of your retirement income can matter, too. Some states will exempt private pensions, while others exempt public pensions. Some will exempt distributions from retirement accounts, such as 401(k)s and IRAs, and many exempt Social Security. Check out our retiree tax map to learn about your state -- or a state where you'll fare better.
Need additional ideas? Take a look at even more savvy moves you can make to stretch your retirement savings.
-
Should You Renew Your CD?With rate cuts impacting earnings, we examine if now is a wise time to renew CDs.
-
7 Ways to Plan Now to Save on Medicare IRMAA Surcharges LaterUnderstand the critical two-year lookback period and why aggressive planning before you enroll in Medicare is the most effective way to minimize IRMAA.
-
Law Reversal Looming? Trump Eyes 2026 Gambling Winnings Tax ChangeTax Deductions It's no secret that the IRS is coming after your gambling winnings in 2026. But how long will that last?
-
What Does Medicare Not Cover? Eight Things You Should KnowMedicare Part A and Part B leave gaps in your healthcare coverage. But Medicare Advantage has problems, too.
-
15 Reasons You'll Regret an RV in RetirementMaking Your Money Last Here's why you might regret an RV in retirement. RV-savvy retirees talk about the downsides of spending retirement in a motorhome, travel trailer, fifth wheel, or other recreational vehicle.
-
Estate Planning Checklist: 13 Smart Movesretirement Follow this estate planning checklist for you (and your heirs) to hold on to more of your hard-earned money.
-
Should You Rent in Retirement?Making Your Money Last Renting isn't right for all retirees, but it does offer flexibility, and it frees up cash.
-
6 RMD Changes We Could See This YearMaking Your Money Last Congress is considering two bills that would make major changes to required minimum distributions. Could your RMDs be affected?
-
A Kiplinger-ATHENE Poll: Retirees Are Worried About MoneyMaking Your Money Last Concerns about recession, inflation and health care costs weigh on retirees and near retirees.
-
The Retiree's Guide to Going Back to WorkMaking Your Money Last Inflation and a bear market have prompted some retirees to change course.
-
Does an Annuity Belong in a 401(k)?Making Your Money Last Unlike pensions, 401(k)s place the risk of outliving savings squarely on the retiree's shoulders. Find out what's right for you.
