5 Tricks to Maximize Your Retirement Savings in the New Year

The start of a new year is an opportune time for investors to evaluate their retirement savings strategy and make updates if necessary. Making the most of your retirement contributions today will allow you to spend more in retirement or retire sooner if you choose. As you look at your retirement strategy, consider these five tricks that can help maximize your savings.

The employee contribution limits on 401(k) and similar employer-sponsored retirement plans increased to $20,500 in 2022. Additionally, HSA limits increased to $3,650 for individuals and $7,300 for families.

If you were already maxing out your contributions to those accounts in 2021, you can increase your payroll deductions in 2022 to save even more. If you weren't already maxing out the limits, you should still try to increase your savings. A good goal is to increase your payroll deduction percentage by one percentage point every year until you reach 10% to 20% of your salary.

Source Fool.com