Blog
Get Back on Track with Retirement Savings
Q: I recently had to dip into my retirement accounts to pay for food and gas for a few months. How can I best get retirement savings back on track?
A: Planning for the future takes time and consistency. The daily ups and downs of life can mean taking a detour from your carefully thought out plans. It doesn’t mean you can’t regroup and get back on track.
If your employment and income situation is stable again, with bills and savings within your budget, you should be able to continue saving for your retirement or even increase your contributions moving forward. If possible, increasing the amount you’re putting into a savings can help replenish the savings you withdrew.
Your Journey to Financial Wellness Begins Here
Here are some things to consider:
- Depending on your age, there are different limits on the amount of tax free yearly contributions you can make. Check to see what your limits are to determine if you have any additional wiggle room to make additional contributions this year or in coming years.
- Adding any extra income, stimulus funds or refund money towards your retirement account after all other bills are met. It may be tempting to want to treat yourself with the extra money, but you’ll be happy that you regrouped your retirement instead.
- Always treat retirement savings like a priority bill. It is an essential debt you owe yourself — security for your future — just like you need to pay your mortgage or auto loan.
- Deduct your retirement directly from paychecks. As they say, set it and forget it. Out of site, out of mind – the money accumulates while you’re busy getting on with life.
- Talk to a financial advisor about your concerns and if there are realistic changes to be made. Realizing you are not on track with your retirement savings often means making some adjustments. A Financial Advisor is an objective professional who can help you understand your options.
*Content provided by GreenPath Financial Wellness
