Today, retirement investing can be complex. Prior generations enjoyed pensions which paid them a percentage of their work salary for life upon retirement. These pensions have vanished in favor of defined contribution plans— where you save and build a balance to draw from during retirement. While retirement savings can lead to a good nest egg, it can be hard to motivate for retirement until it’s almost too late.

Max Out Your Tax-Free And Tax-Deferred Savings Options

Know your contribution limits and strive to hit the mark every year. If you are under 50, you can invest $18,500 each year in a 401(k) plan. If over 50, this limit increases to $24,500. If your employer matches all or part of your contribution, make sure you are getting the maximum benefit. You can also invest a maximum of $5,500 in an Individual Retirement Account (IRA) if you are under 50, $6,500 if you are over 50.

Don’t Forget Regular Savings, Too

If you can afford to save more, don’t let beneficial tax treatment limits curtail your savings. While regular savings and investing may not grow tax-free or provide deductions, it can be a tremendous source of income when needed. The key is to develop a strict savings plan and invest based on your age.

Invest Your Savings In Growth Stock Mutuals To Maximize Returns

If you are under 50, you can put the markets to work for you and watch your money grow. Over time, mutual fund investing can provide much higher rates of return than a simple savings account. There is risk, however, and retirement savings requires a long-view.  The older you get, you will want to choose investment options that are more stable such as income funds.

Lower Living Expenses That Stand In The Way Of Savings

The number one thing standing in the way of retirement savings is your daily living expense. Imagine how much you could save if you didn’t have a mortgage or car payment. Make that a reality by rethinking your expenses as you age. Keep your car in good repair and hold on to it rather than trading it in for a new model. Consider selling your home and downsizing to one that you can buy without a mortgage loan. Divert the savings directly into your retirement nest egg.

Emotionally Motivate Yourself To Save

The key to retirement investing is to prioritize future happiness and security over frivolous living today. One way to achieve this prioritized thinking is to become emotionally attached to the retirement dream. Do you hate your 9-5 job? Then make saving to escape from it a guiding principle of your life.