Three Ways to Supersize Your Retirement Savings
Don’t underestimate the power of taking advantage of your company’s 401(k) match, catch-up contributions and more.


It’s important to check your retirement accounts regularly to ensure they are accomplishing your goals. Are you seeing the kind of growth you want? Are you comfortable with how much risk you’re taking? You never know when something may need to be changed or updated and you don’t want to miss out on an opportunity. It is up to you and your financial adviser, if you have one, to actively optimize and manage your retirement plans to help work towards your dream retirement.
Various techniques and strategies can help you maximize your retirement savings. You might be familiar with some basic concepts or common methods, but many less obvious tactics may significantly improve your plans. These can vary from adjusting investment portfolios to taking advantage of tax-saving methods. A thoughtful and strategic plan can greatly impact your retirement savings.
1. Take the company match.
There are usually two ways you can contribute to your 401(k): what you contribute yourself and, if available, the match from your employer. If you are not participating in your company match, you are leaving free money on the table. I tell my clients it’s similar to taking a voluntary pay cut and most of us would not want to do that. Unfortunately, despite this benefit, many Americans are missing out. As many as one in four couples fail to take full advantage of matching 401(k) contributions from their employer.

Sign up for Kiplinger’s Free E-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.
A company match isn’t only good for the employee, it’s good for the company as well. Employees who invest in their future through their 401(k) plan may be less likely to move on to other companies which reduces turnover. Ideally, companies want employees to keep growing their 401(k) in the same place for as long as possible.
I recommend contributing 10% to 15% of every paycheck to your 401(k). If you can’t manage that, you should be contributing at least enough to get the company match.
2. Pay yourself first.
Whenever you get a little extra money, whether it’s a tax refund or a raise at work, it’s tempting to splurge on something fun for yourself. You deserve it! However, you might consider putting at least some of that money toward your financial future first. What does this look like? From the amount of money you make each month, take a look at how much of that you are putting into a savings account. Can you increase that amount? Even an extra $10 per paycheck can make a big difference over the span of your career. You want to ensure you have enough money in your savings account to cover any unexpected emergencies.
You could also consider opening another retirement account such as Roth IRA. This can have a big impact on your overall tax situation in the future. In contrast to a traditional IRA, anything you put into a Roth IRA comes from after-tax dollars. While you don’t get an immediate tax deduction, earnings grow tax-free and withdrawals are tax-free in retirement.
3. Leverage your catch-up contributions.
Catch-up contributions are among the most valuable tools to help boost retirement savings. These are additional contributions allowed beyond the normal limits that retirees can contribute to their accounts. These are especially vital for those nearing retirement.
To qualify for these catch-up contributions, you must be 50 years or older during the calendar year you want to start taking advantage of this added benefit. Catch-up contributions apply to many different accounts like a 401(k), 403(b), 457(b) and a SIMPLE IRA. However, the amount you can contribute depends on the type of account. For a 401(k) or a 403(b), catch-up contributions are limited to $7,500. The maximum catch-up contribution for an IRA is $1,000.
Catch-up contributions can also be made to Roth IRA accounts. You can put it all towards your Roth or split the money between that account and your traditional 401(k).
Adults have spent all of their lives paying for children, a house, or both, and now that they are older most can afford to put more money away for retirement, which is what makes catch-up contributions so valuable.
With Americans living longer than ever before, you must take a closer look at your retirement accounts and adjust accordingly to help make your savings last. If you are serious about retiring and living comfortably, make sure you are saving as much as you can while still earning a paycheck. Whether you are close to retirement or years away, it’s never too late to optimize your retirement savings.
Drake & Associates is an independent investment advisory firm registered with the U.S. Securities & Exchange Commission. This is prepared for informational purposes only. It does not address specific investment objectives, or the financial situation and the particular needs of any person who may view this report. Neither the information nor any opinion expressed it so be construed as solicitation to buy or sell a security of personalized investment, tax, or legal advice. The information cited is believed to be from reliable sources, Drake & Associates assumes no obligation to update this information, or to advise on further development relating to it. Past performance is not indicative of future results. Registration as an investment adviser does not imply a certain level of skill or training.
Related Content
- Scams in Retirement: How to Get Fraudsters to Scram
- Four Things to Know About Managing a Loved One’s Finances
- Three Mistakes to Avoid in Retirement Tax Planning
- Six Financial Actions to Take the Year Before Retirement
- Stages of Retirement: It’s Not Just About Your Savings
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Tony Drake is a CERTIFIED FINANCIAL PLANNER™ and the founder and CEO of Drake & Associates in Waukesha, Wis. Tony is an Investment Adviser Representative and has helped clients prepare for retirement for more than a decade. He hosts The Retirement Ready Radio Show on WTMJ Radio each week and is featured regularly on TV stations in Milwaukee. Tony is passionate about building strong relationships with his clients so he can help them build a strong plan for their retirement.
-
Cord Cutting Could Help You Save Over $10,000 in 10 Years
How cutting the cord can save you money and how those savings can grow over time.
-
The '8-Year Rule of Social Security' — A Retirement Rule
The '8-Year Rule of Social Security' holds that it's best to be like Ike — Eisenhower, that is. The five-star General knew a thing or two about good timing.
-
You Were Planning to Retire This Year: Should You Go Ahead?
If the economic climate is making you doubt whether you should retire this year, these three questions will help you make up your mind.
-
Are You Owed Money Thanks to the SSFA? You Might Need to Do Something to Get It
The Social Security Fairness Act removed restrictions on benefits for people with government pensions. If you're one of them, don't leave money on the table. Here's how you can be proactive in claiming what you're due.
-
From Wills to Wishes: An Expert Guide to Your Estate Planning Playbook
Consider supplementing your traditional legal documents with this essential road map to guide your loved ones through the emotional and logistical details that will follow your loss.
-
Your Home + Your IRA = Your Long-Term Care Solution
If you're worried that long-term care costs will drain your retirement savings, consider a personalized retirement plan that could solve your problem.
-
I'm a Financial Planner: Retirees Should Never Do These Four Things in a Recession
Recessions are scary business, especially for retirees. They can scare even the most prepared folks into making bad moves — like these.
-
A Retirement Planner's Advice for Taking the Guesswork Out of Income Planning
Once you've saved for retirement, you'll need your nest egg to support you for as many as 30 years. For that, you need a clear income strategy, not guesswork.
-
Why Smart Retirees Are Ditching Traditional Financial Plans
Financial plans based purely on growth, like the 60/40 portfolio, are built for a different era. Today’s retirees need plans based on real-life risks and goals and that feature these four elements.
-
To My Small Business: Well, I've Been Afraid of Changin', 'Cause I've Built My Life Around You
While thinking about succession planning might feel like anticipating a landslide (here's to you, Fleetwood Mac), there are strategies you can implement to manage the uncertainty and the transition.