You'd hoped to make steady retirement contributions in 2025 or maybe even increase your contribution rate. But for one reason or another, that didn't happen. Maybe you lost your job, or you got sick and couldn't work for a while. Maybe one too many unplanned bills got in the way.
It's natural to feel frustrated, but unless you plan to retire in the next week, you probably still have time to make some changes. Here are three things that could help you get your retirement plan back on track.
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1. Take advantage of your 401(k) match
Try to claim as much of your 401(k) match as you can afford to each year, if you qualify for one. This is free money, and if your employer matches 100% of your contributions, you could potentially double your annual retirement contributions without a bunch of extra work on your part.
Check with your employer if you're not sure how it calculates its 401(k) match. Once you know how much you need to contribute to claim the entire match in 2026, divide that by the number of pay periods remaining in the year to figure out how much you must defer from each paycheck. Aim to get as close to this amount as possible.
2. Look for ways to increase your income
Increasing your income is a great option if the bulk of your salary goes toward daily expenses. There are different ways you could approach this. Working overtime is one option. You could also consider starting a side hustle or looking for better-paying positions elsewhere.
When you come into extra money, set aside at least a portion of it for your retirement savings. Do this right away if possible. Otherwise, lifestyle creep could eat it up before you realize it.
3. Revise your retirement plan when all else fails
While it may not be what you want, pushing back your retirement could be your best option if you're well behind and don't believe you'll be able to catch up by your planned retirement date. Or you could opt for a phased retirement, gradually reducing the time you spend in the workforce rather than leaving all at once.
Even short delays can make a big difference because you're giving yourself additional time to save, allowing your current investments to grow, and reducing the length and cost of your retirement all at once.
Play around with a few scenarios until you figure out what works for you. You can also try a combination of these strategies if more than one appeals to you. Just do the best you can and increase your savings rate whenever you see an opportunity.
