10 Specific Ways to Save More for Retirement in 2025
No matter who you are, you’re probably constantly plagued by vague pressure to “save more.” But making progress in personal finance requires not only hopeful ambitions, but also identification of concrete steps that need to be taken.
Think about the practical difference between the vague intention of “saving more!” and let’s say tell yourself, “I’m going to max out my Roth IRA this year,” and you’ll see why it’s important to define your goals. And if you’re looking for concrete steps, I’ve got you covered: Here are 10 steps you can take to really boost your retirement savings this year.
Maximize your employer-sponsored retirement plans
In 2025, the IRS increased contribution limits for 401(k) plans to $23,500, up from $23,000 in 2024. Chances are good that your employer offers some kind of 401(k) matching percentage that can help you boost your savings. Even if you can’t increase your savings to $23,000 (ambitious!), if you’re not already contributing enough to get your employer’s full funding, make it your top priority—it’s essentially free money that can significantly boost your pension. savings in the long term.
Use additional contributions
If you’re 50 or older, you’re eligible for additional contributions to both your 401(k) and IRA accounts. These additional allowances can help you accelerate savings during your peak earning years. In 2025, employees ages 60 to 63 will be able to make larger supplemental contributions to their 401(k) plans , with new limits set at either $10,000 per year or 150% of the standard supplemental contribution limit – whichever is greater.
Optimize your investment strategy
Contributing is great, but you need to make sure your money is invested in line with your goals, so consider reviewing and rebalancing your investment portfolio . While maintaining a diversified approach, explore different investment vehicles that suit your risk tolerance and time horizon. This may include a combination of:
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Low-Cost Index Funds for Broad Market Exposure
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Target date funds , which automatically adjust risk as you approach retirement
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Individual stocks or bonds , if you have experience managing them.
Automate your savings
The most important part of saving is consistency, so set up automatic contributions to your retirement accounts. This pay-yourself-first approach ensures ongoing savings and helps you avoid the temptation to spend money that should be saved. I recommend spreading out your automatic contributions so your bank account doesn’t take a major hit on the first of each month.
It’s easy to set up automatic payment online. Usually, all you need to do is log into all your accounts and find the menu you need. Once you’ve done that, it’s time to get specific: Decide how much to contribute and when those payments are due. Consider automatically increasing the percentage of your contribution each year, even by just 1%, to gradually increase your savings without having too significant an impact on your monthly budget.
Make the most of your Health Savings Accounts (HSA)
If you have a high-deductible health insurance plan, maximize your HSA contributions. These accounts offer triple tax benefits: tax-free contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. After age 65, you can use HSA funds to cover non-medical expenses without penalty, making them an excellent supplement to retirement savings.
Take advantage of tax strategies
Work with a tax professional to make sure you take advantage of all the available tax benefits associated with retirement savings. This may include:
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Traditional IRA contributions
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Credit Saver if you qualify
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Harvesting tax losses on tax returns
I recommend getting ahead of the game and using a spreadsheet to track your tax information throughout the year.
Reduce your high-interest debt as soon as possible
High-interest debt can seriously impact your ability to save for retirement. Develop a strategy for paying off credit card balances and other high-interest loans. Once you eliminate those financial losses, redirect those payout amounts into your retirement savings.
Create a clear retirement budget
Planning for retirement is about much more than just adding to your retirement account. Develop a detailed retirement budget so you know exactly how much you need to save. This exercise may help you:
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Identify potential areas for increased savings
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Set more precise savings goals
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Make informed decisions about lifestyle changes
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Plan for healthcare and long-term care expenses
Another idea is to consider additional sources of income with the sole purpose of putting those earnings toward retirement. Here are some of the most popular ways to earn a little extra money.
Increase your emergency fund
As always, you should set up a strong emergency fund separate from your retirement savings. This helps prevent the need to tap into retirement accounts to cover unexpected expenses, which could trigger taxes and penalties and derail your long-term savings goals.
A typical rule of thumb is to aim to have six months’ worth of living expenses in your emergency fund. When you calculate this number, factor in expenses such as housing, food, utilities, insurance, transportation and debt payments. Non-essential expenses such as vacations, entertainment, or eating out are not included in your “emergency” calculations.
Schedule regular self-checks
Schedule quarterly reviews of your retirement savings strategy. Monitor your progress, adjust contributions as needed, and stay abreast of changes in retirement planning rules and options. This constant attention helps ensure you’re on track to achieve your retirement goals and can make necessary adjustments quickly.
Remember that successful retirement savings is a marathon, not a sprint. By consistently eliminating these strategies and making adjustments as needed, you can eliminate some of the fear and uncertainty and significantly improve your readiness for retirement in 2025 and beyond.