Monday, 27 May 2019
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12 Ways You Can Get More Money in Retirement – The Motley Fool

Most of us would like more money — now. For many people, though, retirement is when they will really need more money, since so few have saved adequate sums to support themselves in the future. For example, about 24% of workers report having less than $1,000 saved for retirement, and a whopping 55% have less than $50,000, per the 2017 Retirement Confidence Survey.

Those statistics are the bad news. The good news is that there are lots of ways to increase your retirement income and strengthen your future financial security. Here’s a look at 12 of them.

A young woman wearing glasses looks like she's thinking and next to her is a drawn thought bubble with an image of a sack of money in the bubble.

Image source: Getty Images.

No. 1: Pay off debts

For starters, you can have more money in the future if you get rid of debt obligations as soon as possible. Having a lot of debt now will keep you from being able to save effectively. If you’re carrying, say, $8,000 in debt and you’re socked with a 25% annual interest rate, that’s a whopping $2,000 in interest!

It may not be easy, but you can pay off that debt. One simple strategy to try is negotiating with your credit card company. Call and ask if it will lower your interest rate. Surprisingly, many lenders will agree to do so in order to keep you around if you’ve been a loyal and good customer. As you pay down your debt, try to tackle your highest-interest-rate debt first because it costs you the most.

No. 2: Increase your saving and investing — now

Next, start saving and investing more — and as soon as possible. To appreciate the power of taking this action, imagine that you’re saving $1,000 per month ($12,000 annually) for retirement. Here’s how much you might accumulate if, instead, you saved $1,200 per month ($14,400 annually) or $1,500 per month ($18,000 annually):

Growing at 8% for

$12,000 Invested Annually

$14,400 Invested Annually

$18,000 Invested Annually

3 years

$42,073

$50,488

$63,110

5 years

$76,031

$91,237

$114,047

10 years

$187,746

$225,295

$281,619

12 years

$245,944

$295,132

$368,915

15 years

$351,891

$422,270

$527,837

20 years

$593,075

$711,690

$889,613

Source: Calculations by author.

Even if you’re only a decade from retirement, boosting your savings from $1,000 per month to $1,500 per mont