Start investing early: The sooner you begin saving and investing for retirement, the more time your money has to grow. Compounding returns can significantly boost your savings over time, making early investing one of the most powerful strategies for building retirement income.
Contribute to a 401(k) with employer match: If your employer offers a 401(k) match, take full advantage of it. Employer contributions are essentially free money that can grow tax-deferred, helping to increase your retirement savings faster.
Diversify your investments: A diversified portfolio that includes a mix of stocks, bonds, real estate and other assets can help reduce risk and provide multiple streams of income. Diversification ensures that if one investment underperforms, others may offset the losses.
Delay Social Security: Waiting to claim Social Security benefits until age 70 can increase your monthly benefit amount. If you have other sources of income and can afford to delay, this strategy can provide higher income throughout retirement.
Keep an eye on inflation: As you plan your retirement income, consider investments that can outpace inflation, such as stocks and real estate. Inflation can erode the purchasing power of your savings over time, so it’s important to invest in assets that grow or adjust with inflation.