12 Simple Ways to Boost Your Retirement Income

Retirement is the most expensive financial goal most of us will ever have. It can easily cost over $1 million, and some people speculate they may need closer to $2 million to retire comfortably.

Saving that amount of money isn't an easy feat, but there are things you can do to make the task a little easier. We'll look at 12 of them here.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Automating your savings ensures you won't forget to make contributions on your own. It's easily done with 401(k)s and other workplace retirement plans. All you have to do is log into your online account or notify your company's HR department how much you'd like to contribute, and that money automatically comes out of each paycheck.

With an IRA, you may be able to link it to your bank account and set up a contribution schedule. Just make sure you have enough in your bank account to cover your contributions. Set reminders for yourself if necessary.

ALSO READ: 3 Ways to Grow $100,000 Into $1 Million for Retirement Savings

Tax-deferred retirement accounts give you a tax break today, but you have to pay taxes on your withdrawals. This could be the wiser play if you believe you're in a higher tax bracket today than you'll be in once you retire.

But Roth accounts -- which require you to pay taxes up front in exchange for tax-free withdrawals later -- are usually the better choice for those who think they're in the same or a lower tax bracket now than they'll be in once they retire. You can also contribute some money to each type of account, but you should favor the one you believe will provide you with the best tax advantages.

There are several other places you can stash retirement savings if you don't have access to a 401(k) or you've maxed out your existing accounts. Self-employed retirement accounts are one option for those who earn some money through a side hustle or a business of their own.

You can also save for retirement in a health savings account (HSA) if you have a health insurance plan with a deductible of $1,400 or more for an individual or $2,800 or more for a family. Taxable brokerage accounts are another option, though these don't offer the same tax advantages as the other accounts described here.

Choosing conservative investments like bonds can make you feel more protected against loss, but being too conservative can actually slow the growth of your investments. This means you'll have to save a lot more of your own money to end up with enough for retirement.

The typical rule of thumb for investing is to keep 110 minus your age in stocks. For a 40-year-old, that would mean keeping 70% in stocks and 30% in bonds. As you age, you can slowly move your money into bonds to protect what you have. Just don't make this move too soon.

ALSO READ: 4 Unexpected Ways to Level Up Your 401(k)

Investing isn't free, and the fees you pay eat into your profits over time. Many people aren't aware of these because the money comes directly out of their retirement account. This can result in you paying a lot more in fees than you have to.

One of the best low-cost retirement investments is an index fund. These contain a variety of stocks and are designed to mimic a market index, like the S&P 500. There's less buying and selling than there is with actively managed mutual funds. That means less work for fund managers, and they pass that savings along to you in the form of lower fees.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Sometimes, finding more money to contribute to retirement is as simple as trimming the fat from your budget. Gather your bank and credit card statements and note where your money is going every month. Look for anything you could easily cut back on, like making your coffee at home instead of going to a coffee shop. You could also cancel subscriptions to services you're no longer using.

Put this money into your retirement savings instead. You can do this by increasing how much of each paycheck you put toward your 401(k), or you could make IRA contributions on your own.

High-interest debt, like payday loans and credit card debt, hampers your ability to save for retirement. It can also cause a lot of stress because it can balloon so quickly. Getting it under control can free up a lot more money to go toward your long-term goals.

There are a few ways to go about this. You could try a balance transfer credit card if you feel confident that you can pay off your debt within the 0% introductory APR window. Or you could see if you qualify for a personal loan. This gives you predictable payments. But you have to be careful not to accumulate more debt later or you'll end up in the same situation.

ALSO READ: Could You Retire on Bitcoin Alone?

Employees who are eligible for 401(k) matches should do what they can to claim that match unless they need their entire paychecks to cover their bills. A 401(k) match could potentially be worth thousands of dollars this year, and after being invested for a few decades, it could easily be worth a five-figure sum.

Talk with your company's HR department or plan administrator if you're unsure how your company's matching system works. Ask about the vesting schedule, too, as this affects when you get to keep your employer-matched funds if you leave the company.

Adults 50 and older are allowed to contribute up to $26,000 to a 401(k) and up to $7,000 to an IRA in 2021. This is $6,500 and $1,000 more, respectively, than adults under 50 can contribute. If you can afford to set aside the extra cash, it's a great way to make up for not saving as much as you'd like when you were younger.

These limits can change from year to year. If you plan to make catch-up contributions, check to see what the annual limit is each year so you know how much you can save.

Side hustles are a great way to bring in extra cash for any purpose, and there are plenty of opportunities for all types of people. Think about your interests and skills and ways you could monetize them. Then, pick the one you think works the best for you right now and try it out.

You have to remember to set aside money for taxes if you have a side hustle since the government can't take taxes from your paychecks. But if you put your savings into a tax-deferred retirement account, you can avoid taxes until you withdraw the money later.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Delaying Social Security means you'll have to fund retirement on your own for longer, but once you sign up, your future checks will be larger than they would've been if you'd signed up as soon as you became eligible at 62.

Your benefits continue to grow slightly every month you delay until you reach your maximum benefit at 70. But delaying this long isn't a good idea for everyone. If you don't believe you'll live past your 70s, you're probably better off starting early.

ALSO READ: Here's How Much Americans' Savings Rose During the Pandemic

Though it's not most people's ideal solution, delaying retirement can boost your retirement income in a few ways. It reduces the length and cost of your retirement while allowing you more time to save. It also gives your investments more time to grow before you withdraw them.

Continuing to work doesn't mean you have to work full-time or that you have to stick to the same job you have right now. You could choose something else that's more in line with your interests and gradually transition into retirement.

These tips may not all apply to you, but give some of them a try and see what kind of a difference they can make for you. You may not be able to save as much as you'd like right now, but just try to do the best you can. And reevaluate your retirement plan at least once per year to see if there are any other things you can do to help your savings grow more quickly.

The Motley Fool has a disclosure policy.