10 Ways to Save More for Retirement in 2022

It's hard to believe, but 2021 is almost over already. Though it may still be decades away for you, retirement is getting closer all the time. And saving for it isn't getting any easier. If your New Year's resolution is to kick-start your retirement savings, here are a few tips that will get you moving in the right direction.

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Regular contributions are key to saving enough for retirement. Automating your contributions reduces the likelihood that you'll forget to make them. All you have to do is link a bank account or tell your employer how much money you want withheld from each paycheck and deposited into your retirement account.

A new year brings a new salary for a lot of people. Stashing that extra money in your retirement account can go a long way toward helping you cover your retirement costs.

Even if you aren't getting a raise in 2022, see if you can bump up your contributions by 1% of your salary. For a $50,000 salary, that's only $500 more per year. But after being invested for a few decades, that could be worth thousands of dollars.

If you're expecting a tax refund from the government, consider stashing this money in your retirement account as well. You'll probably have to use an IRA since you can't make one-time deposits like this to a 401(k). Think about opening an IRA now if you don't already have one.

If your company offers a 401(k) match, make sure you contribute at least enough in 2022 to get the whole thing. Talk to your company's HR department if you're unsure how its matching formula works.

Once you've claimed your match, you could put your retirement savings in a different type of account if you don't like your 401(k) or you can continue stashing money here.

ALSO READ: How Much Is Your 401(k) Match Really Worth?

Adults 50 and older are allowed to make catch-up contributions to their retirement accounts. While adults under 50 may only contribute $6,000 to an IRA and $20,500 to a 401(k) in 2022, adults 50 and older may contribute up to $7,000 and $27,000, respectively. This is a great way to beef up your nest egg quickly if you can afford to spare a little extra cash each year.

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There's no way to avoid fees completely while investing, but it's sometimes possible to reduce them by choosing low-cost investment options. Index funds are a great choice for most people. They offer instant diversification, historically strong returns, and a price tag of just a few dollars per year.

Check the prospectus on your investments to learn what you're paying in fees every year and try to keep your costs below 1% of your assets whenever possible. This will help you hold onto more of your savings.

See if it's possible to reduce some of your other expenses in 2022 to free up more cash for retirement savings. Look back through past bank and credit card statements for any subscriptions you're no longer using. Think about other ways to cut costs, too, like cooking at home more instead of dining out or ordering takeout. Put all the money you're saving toward retirement.

A health savings account (HSA) isn't technically a retirement account, but it offers many of the same benefits. Your contributions reduce your taxable income, and if you use the money for medical expenses, your withdrawals are tax-free also.

These accounts are only available to those with high-deductible health insurance plans. That's one with a deductible of $1,400 or more for an individual or $2,800 or more for a family. If you qualify for one, consider stashing some of your extra money here, as well as in your retirement accounts. Just make sure you choose an HSA provider that enables you to invest your funds.

ALSO READ: 1 Easy Move to Add $13,000 to Your HSA Balance in 10 Years

Single-income households can save more for retirement by opening a spousal IRA. This is a regular IRA opened in the name of the nonemployed spouse. The employed spouse contributes money to this account to help the couple save for retirement. But there are a few catches.

The employed spouse must earn enough throughout the year to cover their own personal contributions to their retirement account and the contributions to the spousal IRA. They also have to be comfortable with the idea that contributions to the spousal IRA belong to their spouse, even if the couple were to divorce later.

Self-employed individuals and those that earn money through side hustles can improve their retirement readiness by stashing some money in a self-employed retirement account. There are different options out there so each person can choose which one makes the most sense to them.

Self-employed retirement accounts usually have much higher contribution limits than traditional retirement accounts. But you usually can't contribute more than 25% of your net self-employment income each year.

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We still have a little bit of 2021 left to enjoy, but you shouldn't wait to craft a plan for your retirement savings in 2022. Review the tips above and try out a few that make sense to you. Check in with yourself every few months or so to make sure you're still on track for your goals.

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