Adults 50 and older can take advantage of IRS provisions to make catch-up contributions to retirement accounts — an extra $6,000 annually to a 401k and an extra $1,000 to an IRA. Such contributions are a great way for boomers to save more for retirement if they have fallen behind. But all of the provisions in the world won’t help unless you’re motivated to save.
Because the future is murky, many people find it difficult to get excited about saving for retirement, said Joe Sicchitano, head of wealth planning and advice delivery at SunTrust Bank. It’s easy to delay setting aside money today when you don’t have a clear picture of how you’re going to benefit down the road.
Figure out what you want in retirement. Don’t just rely on a rule of thumb for how much money you need to set aside or some number from a retirement calculator, as it’s difficult to emotionally invest in a number, Sicchitano said. Instead, imagine your retirement lifestyle, and then find an actual picture that represents it.
Put the picture in your wallet, credit card sleeve or somewhere else where it will be a constant reminder that the more money you spend today, the more difficult it will be to realize your vision of retirement. “The whole point of that is to bring the future into the present to make better decisions today,” Sicchitano said.
A visual reminder can help you get excited about what’s important and motivate you to save more for retirement, he said.
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